The latest Business Trends Report from BDO suggests that British businesses are now regaining their confidence, the post-Brexit slump not being as severe as expected. The index of business optimism, which predicts growth six months ahead and which fell to a three year low last month, has risen to 98.7 from 97.9. 

However, business output, which reflects companies’ current experience of orders, has fallen to 97.4 from 98.2.

Claire Scott in the Express says these factors suggest the Brexit vote instigated a short, sharp fall in business activity that firms are confident will quickly reverse.

The employment index, which indicates business’s recruitment intentions, remains higher than the long-term trend at 100.9. Peter Hemington of BDO is quoted as saying “After the immediate Brexit scare, businesses are becoming more confident as they start to find that, for most of us, it’s back to business as usual.”