Business confidence improved for a fourth consecutive month and recruitment was picking up before the government’s latest restrictions, two closely watched surveys found.
Trading and economic prospects rose this month as confidence among companies reached a post-lockdown high, according to the Lloyds Bank business barometer.
Hiring decisions also increased, “indicating that the worsening trend since lockdown has largely petered out”, the Recruitment and Employment Confederation (REC) said.
Confidence is still low compared with before the pandemic, but the signs were positive before the 10pm curfew on pubs and restaurants was announced last week. At minus 11 per cent the Lloyds survey reading was the highest it has been since March, although still well below its long-term average of 29. The reading is constructed from an average of 1,200 companies surveyed, weighted for size. Polling was carried out between September 1 and 15.
The report hinted at the damage that the new economic restrictions may cause. The improvement was the smallest since June because “local lockdown measures were introduced in some regions”, it said. Sixty-two per cent of businesses reported a negative impact on demand due to coronavirus and local restrictions. Of those surveyed, 38 per cent had no staff on furlough, an increase of five percentage points, indicating that companies have brought staff back.
The REC’s Jobs Outlook showed that hiring intentions for permanent staff improved. Neil Carberry, the confederation’s chief executive, said: “As public health restrictions were eased over the summer, the labour market started to move. Employers remain cautious and concerned about the future path of the economy but are much more sanguine now about their own plans.”
The Times | Wednesday September 30 2020
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