Consumer Confidence and Business Outlook in the UK: An Analysis

Global Business
Environment

Table of Contents
COURSEWORK 2A - NEWSPAPER ARTICLE ON CONSUMER CONFIDENCE..................1
COURSEWORK 2B – EMAIL MESSAGE REGARDING A BUSINESS START-UP...............5
REFERENCES................................................................................................................................9

COURSEWORK 2A - NEWSPAPER ARTICLE ON CONSUMER
CONFIDENCE
Business and consumer confidence can be explained as the study of businesses and the
experience of customers with the help of surveys that are commonly released before the
declaration of official data statistics (Kokodey and et. al., 2018). It mainly presents the changes
or shifts in the business cycle, economic cycle and economic conditions throughout a given
duration. In short, it can be explained as the release of informal statistics before the release of
official data that provides a description of changes in the economic conditions in the economic
cycle. According to the ONS business insights and conditions survey conducted voluntarily to
identify the challenges faced by the economy in the UK and its impact on the businesses. It was
obtained from the survey that was conducted in the end week of June 2022, approximately 17.6%
of businesses have chances of increasing their business performance within the upcoming 12
months. 13.7% of respondents thought that their businesses will decline in upcoming 12 months
and others assume that their businesses will remain nearly at the same condition in upcoming 12
months.
Figure 1Business Performance over next 12 months
The UK's economy is mainly dominated by the service sector, which consists of finance,
business administration, professional services, hospitality business and retail (Morrison, 2020).
Service industry is among the highest contributors in Gross Value Added (GVA), approximately
1.7 trillion that is 80% of total contribution to the economy in the UK. GVA helps to measure the
total economic growth similar to GDP that measures the value of goods and services produced
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after deducting the costs of production. Service industry is more likely to contribute towards the
growth of the economy in upcoming 12 months in the future. The attached document provides
economic output data for broad industrial sectors from 1990 to 2021 which entails that the
service industry is more likely to grow in future 12 months. Example of Tesco can be taken that
shows the growth of the organisation in the upcoming 12 months.
CBI industrial trend survey conducts monthly and quarterly industrial trend surveys that
show that the manufacturing industry could rise over the next 3 months in comparison to its
decline. More likely the manufacturers will support the growth of industry in the upcoming
duration and will also provide higher chances of employment in the manufacturing sector
(Bhagra and Sharma, 2018). The sheet shows that the manufacturing industry could provide
approximately 7% of upcoming jobs in the next 12 month duration. Rio Tinto and Unilever are
among the biggest manufacturing organisations in terms of their revenue throughout the UK that
will grow in the upcoming duration.
Figure 2: UK Economy industry structure
There could be no other customer research project with the life span, thoroughness and
unwavering quality of OECD Consumer Confidence Indicator. This marker offers a hint of
future upgrades of families' usage and saving and the cyclic changes of business, considering
replies concerning their ordinary money related situation, their viewpoint about the by and large
monetary situation, joblessness and capacity of save reserves (Hamilton and Webster, 2018). A
marker north of 100 signals a lift in the clients' conviction towards the future monetary situation,
because of which they are less disposed to save, and more inclined to consume cash on huge
purchases in the following a year. Values under 100 shows a critical decline towards future
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