Economic momentum for UK businesses in 2024

With increasing confidence, improving trade prospects, and a focus on stability, the environment is ripe for businesses to capitalise on opportunities. Data from multiple sources shows positive trends, underscoring the resilience and potential of the UK economy.

Business confidence reaches new highs
The Lloyds Business Barometer for July 2024 reports that, buoyed by positive trading prospects, business sentiment remains above the long-term average, continuing a 14-month streak of positivity. Output expectations have reached a seven-year high, with 62% of businesses reporting stronger activity. This optimism is reflected across regions, with confidence increases in the East Midlands, Wales, and the East of England.

The retail sector, in particular, has seen a resurgence, with output expectations hitting their highest level since the pandemic. This is supported by an improvement in consumer confidence, driving investment and expansion.

Director confidence at a three-year peak
A similar wave of optimism is seen among business leaders, as revealed by the Institute of Directors (IoD). Economic confidence among directors reached a three-year high in July, with the IoD’s Directors’ Economic Confidence Index rebounding to +7 from -14 in June. This marks the first positive reading in three years, driven by the government’s focus on industrial strategy, skills, and infrastructure development, which are crucial for unlocking further growth potential.

Strong performance in trade and exports
Trade figures further reinforce the favourable outlook. The Office for National Statistics has highlighted that 21% of UK businesses have exported over the past 12 months, with 16% reporting increased exports. Additionally, the British Chambers of Commerce noted strong goods export performance, particularly to the EU, with key sectors such as machinery, transport equipment, and pharmaceuticals leading the way.

Outlook: Positive future for growth
With 58% of firms expecting increased turnover in the next 12 months, the momentum is set to continue. Inflation concerns are easing, offering further stability for growth plans. Now is the time for businesses to seize these favourable conditions and pursue new opportunities for expansion.

We are proactively expanding our services and technical capability, to offer tailored solutions that help our customers capitalise on the increasing demand in domestic and international markets.

By enhancing our supply chain support, improving logistics efficiency, and providing timely insights, we are ensuring that our customers are well-positioned to seize new opportunities for growth and navigate the evolving economic landscape with confidence.

If you have any concerns or would like to discuss our contingency services, please reach out to our Chief Commercial Officer, Andy Smith, via EMAIL.