PREPEAR’s Post

Hopefully things are looking UP for the UK economy! 📈 The UK's economic growth has outpaced forecasts, surging at a rate twice that of predictions. This is not just a statistic; it's a beacon of resilience and potential in challenging times. This unexpected uptick comes at a time when many were braced for the opposite. But what does this mean for businesses and individuals across the country? It signals hope, opportunity, and a moment to reassess strategies moving forward. In the face of adversity, our nation has demonstrated an incredible capacity for adaptation and perseverance. It's a testament to the enterprising spirit that thrives within our industries and the insistence on pushing beyond limits. However, while we celebrate this milestone, let's not lose sight of the road ahead. Sustainable growth is the ultimate goal; a sprint is promising, but a marathon requires strategy and endurance. Let's use this momentum to catalyse long-term success and forge a pathway for steady and inclusive economic health. What's your take on this growth spurt? Are you noticing signs of acceleration in your sector? #UKeconomy #growth #resilience #recruitment #fmcg #manufacturing

Just got this feedback from a UK investor, "[Forecasted] revenue growth seems very high and for a UK company". Ok, the numbers might be a little ambitious, but "for a UK company"? Ouch. If this guy had asked, he would have learned that we're majority focused on US-driven growth. The market is global, but most of it is based in the US. Interestingly, this follows on a recent critique I published (link in comments) in which I wrote... "Things here feel small. - Budgets - Mindsets - Ambitions - Investments - Risk appetites - The list goes on" Do I really need to add investor ambition to the list, too? This sentiment is part of a broader, systemic set of cultural and economic challenges plaguing the UK over the past decade, according to today's article in Bloomberg, which notes: "Just one in 10 UK workers were classified as “engaged” at work, which means putting in discretionary effort on the tasks they’re asked to do, according to Gallup research published Wednesday that tracked a slow erosion in motivation over the last decade." If this is right, this is terrible. We can do much better. The opportunities out there are tremendous. Now, to be clear, I'm not new to the software venture build game, so I'm fully aware that more than 9 out of 10 pitches to investors are going to result in crickets or declines, but feedback like I got today is really uncool and unhelpful - not just for entrepreneurs like me, but for the broader economy. https://lnkd.in/eBq2vjyG cc Irina Anghel

People Resources I say this often; it merits a great deal of attention. The single most important resource of any country is its people. A popular meme by the "America's no better than any other country" crowd shows that they simply don't understand. I should qualify what they don't understand... Moving on. The major import of my observation is the interaction between government and business. I don't hide the fact that government is too big. On the other hand, I don't care when business gets "too big" unless followed by "to fail." The problem is that government does not add value to the economy. That is not its purpose. It can reduce the value of the economy. Even a Keynesian economist, if being honest, has to admit, based on the numbers alone, that the government should be shedding jobs and curtail spending. That is not what is happening. Government added 40K+ jobs in May. What does that mean? At a time when – by the numbers – unemployment is low, private businesses, where value is actually added to the economy, are competing with government for employees. Government is competing with business. As always, government wins, the economy loses.

The UK economy is not the only one currently spluttering along. The European Commission last week downgraded forecast growth across the euro region to 0.8% for 2024 and referenced broad economic stagnation and weak momentum. In terms of high interest rates and low growth, the EU has more in common with the UK than it would like to admit. I think there’s dangerous momentum at play here. I spent the new year over in Bosnia. They look with envy at economies such as Germany and the US. Young, talented people are leaving the country in droves because they see more opportunity elsewhere – only exacerbating Bosnia’s challenges. I’m seeing echoes of this in the UK. Right now, for the young, and the not so young, markets such as Dubai and the US appear to have much more potential, much more reward, much more opportunity. With such promise elsewhere, the current gloom and pessimism which characterises much about the UK labour market may well see many exiting it. (If you like some of thinking on these posts and feel something similar would benefit your employer branding and EVP initiatives, please feel free to reach out via DM).

📈 Exciting insights on boosting economic growth! 🚀 Check out our latest article discussing the significant impact of increased productivity in the UK services sector. With productivity being a key driver of economic prosperity, understanding its implications is vital for businesses and policymakers alike. This article delves into the strategies, trends, and potential outcomes of enhanced productivity in one of the UK's most critical sectors. Whether you're an entrepreneur, policymaker, or simply interested in economic growth, this article offers valuable perspectives on driving efficiency and fostering economic resilience. Read the full article here: https://lnkd.in/dZXpbVA2 #EconomicGrowth #Productivity #UKServicesSector #BusinessStrategy #PolicyMaking #EconomicDevelopment 🌱💼📊

Can the UK become the G7's fastest growing economy and how can this growth be unlocked? Useful insights into the UK economy and what it all means in the PwC July 2024 UK Economic Outlook

News） Has New Zealand's economy bottomed out? Half of businesses expect improvement. Economists point out that New Zealand (NZ) business confidence, which improved significantly in August, is due to the view that the current state of the economy is so bad that it can only get better from here on out, according to public broadcaster Radio NZ. According to the NZ Business Sentiment Index compiled by Australia and New Zealand Banking Corporation (ANZ), the percentage of businesses expecting business conditions to improve over the next year rose significantly from 27.1% in July to more than 51% in August, the highest level in the past 10 years. The consumer confidence index also improved in August, although it is still below the 10-year average. Meanwhile, the real economy is showing signs of weakness, with retail sales still 8.2% lower than its mid-2021 peak, construction activity continuing to slow, and the number of restaurants and cafes declining for the first time in a decade. BNZ chief economist Jones noted there is a big gap between the current situation and the outlook, which he said is consistent with the view that we are at the bottom of the economic cycle. ANZ senior economist Workman said business confidence data suggests the economy may recover more quickly than expected, and the Reserve Bank of New Zealand (RBNZ) needs to proceed cautiously with "disinflation," a slowdown in the rate at which inflation rises.

ECONOMY IN THE MIRE? Britain’s economic prospects have been downgraded by the International Monetary Fund (IMF) for the second time in three months as it warned the country had become dependent on foreign-born workers for growth. The fund said that the UK is at risk of becoming trapped in a prolonged period of weak growth and stubborn inflation, as it warned of zero growth this year once increases in the population are taken into account. IMF analysis showed growth in Britain’s workforce had been powered entirely by immigrant laboursince 2019. It came as official figures show that the number of workforce dropouts claiming long-term sickness had surged to a fresh record high. (Ed:Oh dear. I can’t help wondering how many of these are ACTUALLY sick.) More than 2.8m people now say they are too ill to work, the highest number since records were first collected by the Office for National Statistics (ONS). The IMF on Tuesday downgraded its forecasts for UK growth for the next two years, even as it hailed a brighter global outlook. Its World Economic Outlook showed the global economy is expected to expand at a faster-than-expected pace of 3.2pc this year. Daily telegraph

How will the UK economy do in 2024? A key indicator for the health of the economy is the comparison between how many companies are created each year and the number that are dissolved. In 2019 there were 670,000 company incorporations and 671,000 dissolutions, a net contraction in the number of companies of around 1,100, consistent with the rather tepid economy we were experiencing at that time. The numbers for 2020 were distorted by the pandemic, with a net increase of 221,000. Incorporations rose further in 2021 and 2022, but these gains were more than offset by a sharp rise in dissolutions as government support was withdrawn and reality caught up with many companies. Extremely high energy costs and high inflation were key factors in the demise of many businesses over this period. The number of companies incorporated during the first 11 months of 2023 was 9% higher compared with the equivalent period last year, while dissolutions rose by less than 1%. These numbers provide a helpful indicator on what is going on with the economy, as the ‘cycle of business life’ is played out. This are also a statistic worth watching in 2024. How do you think the New Year will pan out? #costreduction #procurement #accountancy #business #icaew #nonexecutivedirector #ned

The latest Business Confidence Monitor (#BCM) for Q4 2023 shows a slight shift in sentiment within the quarter. However, the quarter-on-quarter improvement in sentiment is marginal, remaining broadly steady at a similar level over the last few quarters. Overall confidence continues to fall short of the pre-pandemic average. The survey results are based on 1,000 telephone interviews among ICAEW Chartered Accountants covering a range of UK sectors, regions and company sizes, ensuring a representative picture of the UK economy. The latest quarterly findings are based on the period 17 October to 15 December 2023. Key points Business sentiment has failed to pick up in recent quarters and remains below its historic average. However, within the quarter weekly data shows confidence improving after a fragile start. Sentiment is partially restrained because selling price inflation and profits growth have fallen. Meanwhile, input cost rises have slowed once more, and salary growth appears to have peaked. Companies anticipate both to moderate further in the year ahead while employment growth is set to remain at current rates. Domestic and export sales growth continued to soften, reflecting weaker demand, but companies forecast an uptick. The underlying weakness of the economy, coupled with various uncertainties and challenges, has affected all sectors. Sentiment is neither strongly positive nor negative in any sector. Customer demand is the one of the two most widespread growing challenges facing businesses, together with regulatory requirements, which primarily is the most pressing issue for the Banking sector. In addition to these two challenges, finance-related issues, including the tax burden, bank charges, late payments and access to capital, remain pressing concerns. Privately owned companies forecast slightly stronger domestic and export sales growth and higher profits growth than listed companies. Some manufacturing-intensive regions are the most confident, while the South West and East of England have edged into positive territory. #executivedirectors  #culturetransformation #innovation #ceos #ceo #strategytoexecution #nonexecutivedirectors #commmunications #trustbasedleadership  #boardofdirectors #valuersbasedleadership #employeeengagement  #ceo #businessresilence #opportunities #trust #research #businessgrowth #modelling  #people #values #leadership #thoughtleaders #thoughtleadership