Optimism among businesses rose in the final quarter of 2015 to 73%, according to research from Grant Thornton’s International Business Report (IBR).
Economic growth across the private sector also increased in the final 3 months to December. Businesses reporting output across the manufacturing, retail and consumer sectors rose by 20% according to Confederation of British Industry’s (CBI) latest growth indicator.
The CBI expects the economy to grow by 20% over the next 3 months.
Fewer businesses expressed concerns over the availability of skilled employees with solid employment growth predicted in 2016.
According to CIPD’s analysis of the labour market:
- employment will grow as much as half a million, greater than the forecast growth of 400,000
- wage growth will remain at 2%, below the average earnings growth of 3.5%
- disappointing productivity growth will remain the biggest long-term risk to the economy.
Mark Beatson, chief economist for CIPD, said:
“Research shows that most employers remain confident about recruitment going into 2016 and most say they have a choice of suitable candidates for most positions. With record levels of net migration into the UK increasing the supply of labour, it doesn’t look like we’re going to see a skills crunch any time soon.”
However Carolyn Fairbairn, CBI director general adds that there is no room for complacency coming into the new year:
“Many emerging markets are facing a testing time, with China moving to a slower growth path and other emerging economies being buffeted by low commodity prices, capital outflows and currency depreciation.”