海角视频

Optimism in the economy across the services industry fell sharply in August to levels not seen since 2013, according to a new report from accountants and business advisors BDO.

BDO鈥檚 Services Optimism Index collapsed 3.89 points in August to 95.49, only just above the 95 level that indicates a recessionary mindset has taken hold.

The drop in confidence has dragged the overall Optimism Index down by 3.21 points across the month.

The index provides information on future economic developments based on opinion surveys of over 4,000 respondents to constituent surveys and is a good indicator of economic growth in the sector six months ahead.

History shows that when confidence falls, it can drive businesses to invest less and hire fewer people, in turn creating the conditions for a recession.

This negativity was reflected throughout BDO鈥檚 Business Trends report.

BDO鈥檚 Employment Index fell by 0.26 points in August.

Though this has been the most buoyant economic indicator in recent years, reflecting the 海角视频鈥檚 extraordinary ability to create jobs through this economic cycle, the index has now been in decline for eight consecutive months.

Elsewhere, BDO鈥檚 Output Index also fell by 0.37 points, marking the third month of decline for output.

Richard Rose, partner and head of BDO in the Midlands, said: 鈥淭his month鈥檚 dramatic fall in confidence is a very worrying event.

鈥淧essimistic companies don鈥檛 invest or hire, which is how recessions start.聽

鈥淭he reason for this has to be that 海角视频 businesses have suddenly woken up to the fact that a no deal Brexit is a real possibility.鈥�

Mr Rose added: 鈥淭his reminds me very much of the aftermath of the 2010 election, when there was a sudden realisation that austerity wasn鈥檛 going to be pretty.

鈥淪entiment collapsed as a result, and this was the precursor to a long period of very low growth that followed.

鈥淟et鈥檚 hope that we can avoid a no deal Brexit, otherwise the next couple of years could be very uncomfortable.鈥�

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