Business confidence rebounds to pre-brexit vote levels

UK business confidence rebounded in September to levels not seen since before the EU referendum, according to the latest poll.

The report by YouGov (LSE: YOU.L - news) and the Centre for Economics and Business Research (CEBR) showed business confidence increased to 112.4 in its confidence index last month, after falling to 105.0 in July and 109.7 in August.

A reading above 100 indicates positive business sentiment.

The index shows that confidence among businesses was only temporarily reduced in the wake of Brexit, and has not taken a long-term fall.

"The panic that gripped businesses in the aftermath of the referendum has subsided and they are now much more level-headed and optimistic about the future of both their own organisations and the UK's economy in general," said Scott Corfe, director at the CEBR.

The survey showed a 9% rise in the number of businesses feeling optimistic about the UK's economic prospects over the coming year, up to 44% in September, from 35% in August.

The number of businesses feeling pessimistic about the country's economy decreased, falling from 45% in August, to 35% in September.

The strengthening in business confidence echoes a bounce-back in consumer confidence over the same period.

"Both consumers and organisations have realised that very little has actually changed yet and are now treating things as 'business as usual,'" said head of YouGov Stephen Harmston.

"We won't know until next month what impact speculation about whether the government is planning a 'hard' and 'soft' Brexit will have on business confidence.

"We will have to wait and see whether the rebound in confidence is itself hard and resilient to such talk or whether it is soft and cases another spasm of panic among organisations."