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Business output has risen to the highest level in almost two years – marking a ‘turning point’ for the UK economy.
Research showed that business activity rose for the second month in a row in March.
Accounting firm BDO said the manufacturing index rose to 103.39 – the highest level since May 2022. Above 95 indicates growth.
The rise was driven by falling inflation – recorded at 3.4 percent in February – but experts said ‘we are not out of the woods yet’ as measures of business optimism and employment figures both plummeted.
BDO’s entrepreneurial optimism index fell 0.16 points to 99.33 – the first decline since November.
‘Turning point’: Research showed that business activity rose for the second month in a row in March
And the employment index fell for the ninth month in a row last month to 98.32 – the weakest point in almost eleven years.
BDO partner Kaley Crossthwaite said: ‘Production is at its highest point in almost two years, illustrating Britain’s robustness.
‘For companies, the mood at the moment is mainly cautious optimism – with the decline in the employment and optimism index showing that we are not out of the woods yet.’
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