As economic growth continues to show little sign of bursting into action, UK businesses are learning to adjust to conditions that look set to stick. The eighth national business sentiment survey conducted by QBE, the business insurance specialist, shows that back in 2011, 21% of businesses expected to see a full economic recovery within two years. Two years later and just 9% now expect a full recovery within two years. 87% of businesses now expect the recovery to be two years or more and 61% believe we will need to wait until at least 2016 – three years or more, before a full recovery can be expected.
Turnover expectation and staffing – the ‘new normal’
As businesses adapt to the ongoing economic circumstances and the ‘new normal’, 71% of businesses expect to keep staffing levels the same for 2013, up from 53% in 2012. There has been a great reduction in the number of businesses intending to employ new staff however, down from 26% in 2012 to just 15% in 2013. Businesses were even more optimistic about hiring in 2011 when almost a third (32%) said that they expected to take on new staff.
More than half of businesses, 57%, now expect their turnover to remain the same over the next six months, compared to 44% in 2012. 27% of businesses are expecting slight growth in 2013 (34% in 2012) and just 3% are expecting turnover to increase greatly (7% in 2012).
Elliot Miller, General Manager, UK National QBE European Operations: “Almost all businesses expect it to be a long haul before the economy fully recovers. While the hope of a quick recovery has certainly petered out over the time QBE has been conducting this research, it is encouraging to now see a level of stability from businesses across the UK. Most of their cost cutting measures have already been implemented, leaving management to focus on growing turnover. While the prospects for the economy may look weak, UK businesses remain resilient.”
