COVID vaccination success provides businesses with confidence

The success of the COVID vaccination programme helped to instil confidence within many UK businesses once more. A survey revealed that the number of confident firms is at its highest level since 2018.

More than 65 per cent of companies are confident about growth forecasts over three years and are even looking to expand their business overseas.

Out of those businesses without overseas operations, a fifth said they are now considering making abroad investments. This number is the highest figure recorded in the survey since it began in 2017.

The survey, conducted by Santander, questioned 1,000 businesses across 14 sectors, all of which had a turnover of more than £1 million.

Six of these companies had an increased output in February 2021, up from three firms in January.

The survey respondents said that Brexit was weighing on trade, and 35 per cent even reported higher trading costs.

Additionally, a boost in business confidence was also driven by technology equipment makers meeting the demands for computers parts, industrial machinery, motor vehicles and parts in smart devices.

The technology sector reported the only rise in export orders, as they invest in making their supply chains more resilient and innovative.

Experts believe that “The picture should continue to improve as the vaccine rollout progresses,” within the technology sector and others.

However, the survey also revealed that the COVID vaccine distribution was increasing confidence within businesses.