U.K. business sentiment reached its lowest level this year with economic prospects following a zigzag path, the latest Business Trends report by accountants and business advisers BDO LLP showed Monday.
The optimism index slipped to 93.1 in July from 93.5 in June. The index has fallen for the fifth consecutive month. Fluctuating confidence levels in the manufacturing and services sectors serve to highlight the zigzag path of UK economic prospects.
Confidence in the manufacturing sector improved notably to 90.5 from 83.8 in June. This increase of 6.7 between June and July was the highest monthly rise since February 2011.
It is likely to be on account of the manufacturing sector diversifying its exports, with more than 50 percent of its trade being exported to outside the erratic Eurozone.
"Where there is cause for cautious optimism is in the revived confidence in the manufacturing sector," said Peter Hemington, Partner, BDO LLP. "The sector should be applauded for taking a pragmatic and adaptable approach to diversify exports away from the volatile eurozone."
On the other hand, the service sector confidence dipped 2.1 points to 93.8 in July. This decline in confidence follows consistent increases between February and May, demonstrating how unsettled optimism levels in key sectors are generating the zigzag pattern of business confidence in the overall UK economy.
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