Regarding the overall development of the UK economy, our community continues to be very cautious. Nevertheless, nearly 40% of respondents will invest more in the medium term and a similar number expect to employ more staff.
Even if the main reason for investing in the UK is the importance of the British market (50% plan to invest in sales and marketing activities), her appeal as a manufacturing location should not be underestimated, as approximately 30% of respondents plan increase investment in production and manufacturing activities.
Political uncertainty and the lack of demand (because of a relatively weak economy) now feature most prominently as challenges for our businesses. These are followed by trade barriers, shortage of skills and labour costs. In comparison to spring, energy costs have moved down the agenda from third to sixth position.
In terms of the effects on their own business operations, the Windsor Framework and the resulting improvement in the relationship between the EU and the UK is viewed more positively than six months ago. Now 42% (versus 29% in spring) expect this to have a measurable positive impact on their business activities.
With regard to long term geopolitical challenges, inflationary pressures are expected to continue to be an issue. Political “interference” on supply chain structures, as well as general issues around the security of supply of energy and raw materials, have somewhat moved down the agenda.
