The two big takeaways from a recent ICAEW survey state that the swift vaccine rollout and a huge drop in infection rates are fueling the positive results. Apparently, optimism is at 38.5 on the quarterly index.
"Accountants such as myself are getting a good vibe from our own clients now, and long may it last!"
The 21st of June is when all restrictions are supposed to end, and even if it's delayed by a few weeks to account for the Delta variant (originally called the Indian variant, but the WHO has reclassified them all), most businesses are feeling positive again. Consumer spending is expected to skyrocket in the second half of 2021.
Yes, some uncertainty remains about subsequent restrictions and lockdowns should a more virulent strain appear, however, we're expecting a 7% growth in the economy over the next 12 months, which far outstrips equivalent countries and blocks around the world.
Other notable expectations:
Exports up by 3.6%
Investments increased by 2.8%
R&D growth by 1.9%
Employment rises by 2.5%
So, this is all great news for the United Kingdom and everyone is expecting a lot of growth in the coming year. But (isn't there always a but?) the UK is a trading nation, so slow vaccine rollouts in other countries can affect our supply chains.
It's good that the likes of the G7, WHO and the United Nations have realised this connection and are making plans to help get the vaccine out to poorer countries around the world by 2022.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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