UK business confidence

Following the recent General Election, UK businesses have shown increased confidence, with the S&P Global purchasing managers' index (PMI) rising to 52.7 in July, indicating growth in the private sector. This marks an uptick from 52.3 in June and surpasses economists' expectations. The surge in business activity is attributed to a notable increase in new orders, the sharpest in 15 months, as firms capitalize on improved business sentiment post-election. Meanwhile, a survey conducted by Bain and BritishAmerican Business revealed that, despite a slight rise in American investor confidence in the UK, concerns over the country's tax regime have grown, with over 70% of US firms citing it as a top priority. The Labour government, while ruling out an increase in corporation tax, faces challenges in creating a favorable investment climate amidst a difficult fiscal landscape. Overall, while optimism prevails, businesses must navigate ongoing economic uncertainties and the implications of tax policy changes.