The BDO's latest report indicates a significant increase in manufacturing optimism, driving the Optimism Index up to 91.96 in July. This rise contrasts with the services sector where sentiment remained flat due to ongoing cost pressures and weak demand. Although trade agreements show potential for growth, significant economic challenges like weak GDP growth and high costs persist. The Employment Index has fallen to its lowest level since 2012, indicating a cooling labour market with reduced hiring sentiment and tightening budgets due to increased costs for employers.
BDO's Optimism Index rose to 91.96 in July, up from 91.58 in June, driven by a strong rebound in manufacturing optimism, which rose sharply from 93.74 to 96.50.
Although new trade deals are showing promise, this has yet to unlock meaningful investments for businesses. Margin pressures remain acute and companies are still holding back amid uncertainty.
The BDO Employment Index fell to 94.11 in July, matching its lowest reading since October 2012, reflecting a marked cooling in the labour market.
The services sector lost the positive momentum it had picked up at the start of summer amid persistent cost pressures and weak overseas demand.
Collection
[
|
...
]