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Pessimism leading onto end of financial year PDF Print E-mail
Tuesday, 01 March 2016

The results from Dun & Bradstreet’s February Business Expectations Survey have highlighted a sharp decline in expectations for the second quarter, with businesses issuing gloomy forecasts for the three-month period to June 2016.

Dun & Bradstreet’s Business Expectations Index, the average of the survey’s measures of Sales, Profits, Employment and Capital Investment, has fallen to 13.2 points for the second quarter of 2016, down 5.7 points from 18.9 points for Q1 2016, and a fall of 6.9 points from 20.1 points for Q2 2015. Nonetheless, it is significantly higher than the 10-year average of 7.0 points.

According to Stephen Koukoulas, Economic Advisor to Dun & Bradstreet, “the slippage in business expectations is across the board with expected sales, profits, employment and new capital expenditure slipping to their lowest level in around two years. It is likely that the global financial market ructions in the early part of 2016 and now the policy uncertainty associated with the upcoming election could be dampening the spirits for the business sector.”

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