This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2017/jul/05/uk-service-sector-car-sales-economy-business-live

The article has changed 16 times. There is an RSS feed of changes available.

Version 10 Version 11
UK service sector growth slows and productivity stumbles - business live UK service sector growth slows and productivity stumbles - business live
(35 minutes later)
2.23pm BST
14:23
The government will be worried by the disappointing slide in UK productivity, which shank by 0.5% in the first three months of this year.
Poor productivity usually leads to lacklustre growth, and ultimately weaker tax receipts; not ideal, if you’re facing pressure to abandon austerity and end the public sector pay freeze.
Sky News’s Ian King has a good take:
What will worry ministers almost as much are the sectoral and regional breakdowns provided by the ONS.
It reports that in the manufacturing sector, output per hour actually improved by 0.2% during the quarter.
However, in the services sector, output per hour fell by 0.6%.
This has a bigger impact overall because the services sector accounts for around four-fifths of all UK economic activity.
On a more encouraging front, productivity in the public sector was 3% higher in 2016 than in 2010, suggesting that the public sector has become more efficient in the face of spending cuts in some sectors.
The regional and industry differences present a mixed picture.
London and the South East remain the most productive parts of the UK, thanks to the high levels of financial services activity there, a factor that has helped make Scotland more productive than some other parts of the UK economy.
The North East of England, a region long associated with industrial stagnation, also scores relatively highly thanks to high levels of what the ONS calls “non-manufacturing production”.
But other parts of the economy, notably Wales and Northern Ireland, score poorly.
Productivity in the UK has suffered its first quarterly fall since the last three months of 2015. Words from me herehttps://t.co/ld1s6XvMf0
2.20pm BST
14:20
If you’re just tuning in, here’s our news story about the slowdown in UK service sector growth:
Slowing growth across Britain’s services companies in June completed a “triple whammy” of disappointing economic news this week that also saw growth in the construction and manufacturing industries fade in response to Brexit uncertainty and weak consumer confidence.
Activity in the services industry, which accounts for almost 80% of economic activity, fell to a four-month low in June, dragging down the all-sector IHS Markit/CIPS purchasing managers index (PMI) from 54.5 in May to 53.9 in June, the lowest since February.
Some analysts said the weak set of figures indicated a broad softening in activity across the economy that was likely to dent the enthusiasm of Bank of England policymakers who have proposed increasing interest rates.
Earlier this week, monetary policy committee members Michael Saunders and Ian McCafferty said persistent inflation and strong employment growth needed to be calmed by higher interest rates. Chief economist Andy Haldane recently indicated that he could vote for a rise later this year should the economy continue to expand.
Chris Williamson, Markit’s chief business economist, said: “A slowing in services sector growth completes a triple-whammy of disappointing PMI survey readings.
“Although the three PMI surveys are running at levels that are historically consistent with GDP growing by around 0.4% in the second quarter, it’s clear that the economy heads into the third quarter losing momentum.”
And here’s the full story:
1.45pm BST1.45pm BST
13:4513:45
Fairtrade protests at Sainsbury's AGMFairtrade protests at Sainsbury's AGM
Supermarket chain Sainsbury is facing criticism at its Annual General Meeting today, after it decided to replace fair trade teabags with a new “Fairly Traded” label.Supermarket chain Sainsbury is facing criticism at its Annual General Meeting today, after it decided to replace fair trade teabags with a new “Fairly Traded” label.
Last week, Sainsbury announced it is introducing its own in-house certification scheme, set new ethical standards and introducing a different way to pay farmers.Last week, Sainsbury announced it is introducing its own in-house certification scheme, set new ethical standards and introducing a different way to pay farmers.
Campaigners are warning today that the move risks undermining the whole Fairtrade movement; the well-respected ethical certification scheme which was set up to give farmers in developing nations a better deal, and protect workers rights in some of the poorest parts of the worldCampaigners are warning today that the move risks undermining the whole Fairtrade movement; the well-respected ethical certification scheme which was set up to give farmers in developing nations a better deal, and protect workers rights in some of the poorest parts of the world
My colleague Sarah Butler is tweeting from the AGM in London:My colleague Sarah Butler is tweeting from the AGM in London:
Shareholders challenging Sains on pilot of stopping Fairtrade tea own label.Shareholders challenging Sains on pilot of stopping Fairtrade tea own label.
Lady from Cafod: concern Sains starting direction that will undermine Fairtrade and lead to plethora of standards, confusion for shoppersLady from Cafod: concern Sains starting direction that will undermine Fairtrade and lead to plethora of standards, confusion for shoppers
But chief executive Mike Coupe is defending the decision, claiming fair trade needs a reboot:But chief executive Mike Coupe is defending the decision, claiming fair trade needs a reboot:
Coupe: Sains has tried working with Fairtrade and found not able to dev system with best economic, social, env outcomes for money investingCoupe: Sains has tried working with Fairtrade and found not able to dev system with best economic, social, env outcomes for money investing
Coupe suggesting Fairtrade out of date: "it might have been fit for purpose 25 yrs ago but we are in a new world with new technology"Coupe suggesting Fairtrade out of date: "it might have been fit for purpose 25 yrs ago but we are in a new world with new technology"
Oxfam has organised a protest outside the AGM, involving ‘human teabags’ in an attempt to sway shareholders and board members.Oxfam has organised a protest outside the AGM, involving ‘human teabags’ in an attempt to sway shareholders and board members.
Matthew Spencer, Oxfam’s Campaigns, Policy and Influencing Director, argues that Sainsbury’s ‘fairer trade’ plan will give tea farmers a worse deal:Matthew Spencer, Oxfam’s Campaigns, Policy and Influencing Director, argues that Sainsbury’s ‘fairer trade’ plan will give tea farmers a worse deal:
“Fairtrade is a lifeline for many of the most vulnerable communities helping them educate their children and provide vital healthcare.“Fairtrade is a lifeline for many of the most vulnerable communities helping them educate their children and provide vital healthcare.
“Sainsbury’s is removing what little control some of the poorest tea farmers and producers have on how they spend the money they make, shifting decisions to a committee far away in London. This power grab turns an effective trade partnership into old school charitable grants. We urge Sainsbury’s to stick with the gold standard Fairtrade mark, which is trusted around the world.”“Sainsbury’s is removing what little control some of the poorest tea farmers and producers have on how they spend the money they make, shifting decisions to a committee far away in London. This power grab turns an effective trade partnership into old school charitable grants. We urge Sainsbury’s to stick with the gold standard Fairtrade mark, which is trusted around the world.”
1.21pm BST1.21pm BST
13:2113:21
JP Morgan pulls out of Worldpay battleJP Morgan pulls out of Worldpay battle
Newsflash: JP Morgan is taking its ball home, rather than battling to take control of Britain’s Worldpay.Newsflash: JP Morgan is taking its ball home, rather than battling to take control of Britain’s Worldpay.
In a brief statement, JP Morgan says that it doesn’t intend to bid for the company:In a brief statement, JP Morgan says that it doesn’t intend to bid for the company:
JP Morgan Chase & Co. (“J.P. Morgan”) notes the announcement by Worldpay Group plc (“Worldpay”) on 4 July 2017. In response to an invitation from Worldpay, J.P. Morgan was at a very early stage in considering whether or not to make an offer or the terms of any offer for Worldpay.JP Morgan Chase & Co. (“J.P. Morgan”) notes the announcement by Worldpay Group plc (“Worldpay”) on 4 July 2017. In response to an invitation from Worldpay, J.P. Morgan was at a very early stage in considering whether or not to make an offer or the terms of any offer for Worldpay.
Following preliminary considerations, J.P. Morgan hereby announces that it does not intend to make an offer for Worldpay. J.P. Morgan continues to hold Worldpay in high regard.Following preliminary considerations, J.P. Morgan hereby announces that it does not intend to make an offer for Worldpay. J.P. Morgan continues to hold Worldpay in high regard.
This leaves the field clear for Vantiv to complete its offer of 385p per share, announced a few minute ago.This leaves the field clear for Vantiv to complete its offer of 385p per share, announced a few minute ago.
And shares in Worldpay have just fallen back to 383p, down 6% today, as the prospect of a juicy bidding war withers away.And shares in Worldpay have just fallen back to 383p, down 6% today, as the prospect of a juicy bidding war withers away.
12.58pm BST12.58pm BST
12:5812:58
Just in: UK payments firm Worldpay has agreed to be taken over by US rival Vantiv in a £7.7bn deal.Just in: UK payments firm Worldpay has agreed to be taken over by US rival Vantiv in a £7.7bn deal.
Yesterday, FTSE 100-listed Worldpay revealed that it had received two separate bids, one from Vantiv and one from JP Morgan.Yesterday, FTSE 100-listed Worldpay revealed that it had received two separate bids, one from Vantiv and one from JP Morgan.
The Vantiv deal (terms here) values Worldpay at £3.85 per share (including a 5p dividend), which is a 19% premium on their value on Monday.The Vantiv deal (terms here) values Worldpay at £3.85 per share (including a 5p dividend), which is a 19% premium on their value on Monday.
However... Worldpay’s shares are trading around 406p right now, indicating that the City believe there could be a bidding war.However... Worldpay’s shares are trading around 406p right now, indicating that the City believe there could be a bidding war.
UpdatedUpdated
at 1.34pm BSTat 1.34pm BST
12.38pm BST12.38pm BST
12:3812:38
Scotland dodges recession as growth outstrips rest of UKScotland dodges recession as growth outstrips rest of UK
Severin CarrellSeverin Carrell
The Scottish economy has avoided a recession after the latest GDP figures showed growth of 0.8% in the last quarter to March 2017.The Scottish economy has avoided a recession after the latest GDP figures showed growth of 0.8% in the last quarter to March 2017.
Alarm about its prospects had deepened after the economy shrank by 0.2% in the previous quarter, leaving Scotland’s economy trailing that of the UK as a whole. But the economy has bounced back in January-March.Alarm about its prospects had deepened after the economy shrank by 0.2% in the previous quarter, leaving Scotland’s economy trailing that of the UK as a whole. But the economy has bounced back in January-March.
Nicola Sturgeon, the first minister, tweeted that the country’s economy outperformed the UK’s 0.2% for the last quarter.Nicola Sturgeon, the first minister, tweeted that the country’s economy outperformed the UK’s 0.2% for the last quarter.
Scottish economy grew by 0.8% in first quarter of 2017 - compared to UK growth in same quarter of 0.2%. https://t.co/0srD0HzHmEScottish economy grew by 0.8% in first quarter of 2017 - compared to UK growth in same quarter of 0.2%. https://t.co/0srD0HzHmE
With Scotland’s construction sector still contracting, a 4% growth in manufacturing and 3.1% growth in production help lift the overall figures, with chemicals including refined petroleum, and metals, driving those up.With Scotland’s construction sector still contracting, a 4% growth in manufacturing and 3.1% growth in production help lift the overall figures, with chemicals including refined petroleum, and metals, driving those up.
Sturgeon said that the Scottish government’s intervention to help save the Dalzell steel plant had helped boost GDP.Sturgeon said that the Scottish government’s intervention to help save the Dalzell steel plant had helped boost GDP.
Part of Q1 GDP growth in Scotland down to resumption of steel production at Dalzell - saved with the help of @scotgov intervention.Part of Q1 GDP growth in Scotland down to resumption of steel production at Dalzell - saved with the help of @scotgov intervention.
However, on an annualised basis Scotland’s growth stood at 0.7%, still lagging substantially behind the UK’s.However, on an annualised basis Scotland’s growth stood at 0.7%, still lagging substantially behind the UK’s.
Economists at the Fraser of Allander Institute said last week this sluggish growth was due to wider problems with Scotland’s economy, and not just the effects of the slump in oil prices.Economists at the Fraser of Allander Institute said last week this sluggish growth was due to wider problems with Scotland’s economy, and not just the effects of the slump in oil prices.
John McLaren, an economist with Scottish Trends, said the latest figures showed Scottish growth had reached 1.2% over the past two years against 3.5% for the UK as a whole.John McLaren, an economist with Scottish Trends, said the latest figures showed Scottish growth had reached 1.2% over the past two years against 3.5% for the UK as a whole.
Grahame Smith, general secretary of the Scottish TUC, said more urgent and substantial action was need to boost the economy, including scrapping the public sector pay cap.Grahame Smith, general secretary of the Scottish TUC, said more urgent and substantial action was need to boost the economy, including scrapping the public sector pay cap.
Smith argues:Smith argues:
“Growth rates in Scotland have been low for several years and what growth there has been has in part resulted from hard pressed workers building up more debt and exhausting their savings. This is clearly unsustainable.“Growth rates in Scotland have been low for several years and what growth there has been has in part resulted from hard pressed workers building up more debt and exhausting their savings. This is clearly unsustainable.
“If steps are not taken to boost investment and demand and to prevent irresponsible private lending from destabilising the economy, another crash and recession is just round the corner.”“If steps are not taken to boost investment and demand and to prevent irresponsible private lending from destabilising the economy, another crash and recession is just round the corner.”
12.11pm BST12.11pm BST
12:1112:11
Sam Hill, Royal Bank of Canada’s senior UK Economist, agrees that business confidence has been dented by the maelstrom in UK politics.Sam Hill, Royal Bank of Canada’s senior UK Economist, agrees that business confidence has been dented by the maelstrom in UK politics.
On this week’s PMI reports, he says:On this week’s PMI reports, he says:
The mid-month surveys will have been conducted in a period of political uncertainty, following the hung parliament general election result and the start of formal Brexit negotiations.The mid-month surveys will have been conducted in a period of political uncertainty, following the hung parliament general election result and the start of formal Brexit negotiations.
This may have contributed to an easing in the business expectations components of the surveys. For example, there was a 4.4-point drop in that part of the service PMI, leaving it 1.3 standard deviations below the long-run average.This may have contributed to an easing in the business expectations components of the surveys. For example, there was a 4.4-point drop in that part of the service PMI, leaving it 1.3 standard deviations below the long-run average.
RBC predicts that the UK economy grew by 0.4% in the April-June quarter.RBC predicts that the UK economy grew by 0.4% in the April-June quarter.
That would be an improvement on the first quarter, when growth slowed to 0.2%, but still below trend.That would be an improvement on the first quarter, when growth slowed to 0.2%, but still below trend.
11.50am BST11.50am BST
11:5011:50
Here’s some food for thought, from Scott Corfe, chief economist at the Social Market Foundation:Here’s some food for thought, from Scott Corfe, chief economist at the Social Market Foundation:
The UK’s productivity problem: if we were at trend a full-time (Mon-Fri) worker could take Friday pm off and still produce 8% more each week pic.twitter.com/1OOKazO7YVThe UK’s productivity problem: if we were at trend a full-time (Mon-Fri) worker could take Friday pm off and still produce 8% more each week pic.twitter.com/1OOKazO7YV
11.25am BST11.25am BST
11:2511:25
The slowdown in UK service sector growth in June was “disappointing, but hardly surprising”, says Howard Archer, chief economist at the EY Item Club.The slowdown in UK service sector growth in June was “disappointing, but hardly surprising”, says Howard Archer, chief economist at the EY Item Club.
“Following on from weaker manufacturing and construction surveys, the softer services PMI points to an already fragile economy struggling in June as heightened uncertainties about the UK outlook fuel business and consumer caution.”“Following on from weaker manufacturing and construction surveys, the softer services PMI points to an already fragile economy struggling in June as heightened uncertainties about the UK outlook fuel business and consumer caution.”
Archer singles out the fall in new business growth, to a nine-month low, as a particular concern:Archer singles out the fall in new business growth, to a nine-month low, as a particular concern:
Uncertainty appears to have caused some companies to limit or delay spending. Meanwhile, consumer-facing services companies continue to be hampered by squeezed purchasing power.Uncertainty appears to have caused some companies to limit or delay spending. Meanwhile, consumer-facing services companies continue to be hampered by squeezed purchasing power.
10.56am BST10.56am BST
10:5610:56
The fall in UK productivity last quarter should send alarm bells ringing in Westminster, says Ian Brinkley, acting chief economist at the CIPD:The fall in UK productivity last quarter should send alarm bells ringing in Westminster, says Ian Brinkley, acting chief economist at the CIPD:
“Today’s figures should act as a very sharp reminder to Government that Brexit is not the only challenge facing the UK. Unless more is done to tackle the nation’s low productivity, people’s wages and living standards will continue to fall and the UK will be ill-equipped to compete once we do leave the EU.“Today’s figures should act as a very sharp reminder to Government that Brexit is not the only challenge facing the UK. Unless more is done to tackle the nation’s low productivity, people’s wages and living standards will continue to fall and the UK will be ill-equipped to compete once we do leave the EU.
“Government must urgently review its productivity plan and ensure that its industrial strategy includes a much stronger focus on boosting investment in skills and efforts to boost managerial quality in partnership with employers, professional bodies and unions at a national, sector and local level.”“Government must urgently review its productivity plan and ensure that its industrial strategy includes a much stronger focus on boosting investment in skills and efforts to boost managerial quality in partnership with employers, professional bodies and unions at a national, sector and local level.”
Steve Hill, external engagement director at The Open University, argues that better staff training is the key:Steve Hill, external engagement director at The Open University, argues that better staff training is the key:
“As the UK’s productivity continues to fall,it’s crucial that organisations invest in talent.“As the UK’s productivity continues to fall,it’s crucial that organisations invest in talent.
The current skills gap is holding back business growth. Employers are struggling to recruit workers with the right skills and are paying inflated salaries and enhanced recruitment costs as a result.The current skills gap is holding back business growth. Employers are struggling to recruit workers with the right skills and are paying inflated salaries and enhanced recruitment costs as a result.
“The Apprenticeship Levy presents an opportunity for organisations to build better skills from within, developing a more efficient, engaged and productive workforce. Faced with a shrinking talent pool, organisations need agile and adaptable workers who can embrace change and meet new challenges.”“The Apprenticeship Levy presents an opportunity for organisations to build better skills from within, developing a more efficient, engaged and productive workforce. Faced with a shrinking talent pool, organisations need agile and adaptable workers who can embrace change and meet new challenges.”
Ian Jones of the Press Association shows how productivity has been stagnant for a decade:Ian Jones of the Press Association shows how productivity has been stagnant for a decade:
UK productivity is (once again) back below the level it was pre-crash. We're heading for an entire decade of stalled growth. pic.twitter.com/uqqRHBPCreUK productivity is (once again) back below the level it was pre-crash. We're heading for an entire decade of stalled growth. pic.twitter.com/uqqRHBPCre
This is from BBC personal finance correspondent Simon Gompertz:This is from BBC personal finance correspondent Simon Gompertz:
To people who are asked to work ever harder for low wages, being told that the UK has a productivity problem feels like a slap in the faceTo people who are asked to work ever harder for low wages, being told that the UK has a productivity problem feels like a slap in the face
10.33am BST10.33am BST
10:3310:33
UK productivity fallsUK productivity falls
I hate to bring even more bad news... but Britain’s productivity has fallen.I hate to bring even more bad news... but Britain’s productivity has fallen.
UK labour productivity, as measured by output per hour, declined by 0.5% in the first three months of this year, according to new figures from the Office for National Statistics.UK labour productivity, as measured by output per hour, declined by 0.5% in the first three months of this year, according to new figures from the Office for National Statistics.
It’s the first fall since the end of 2015, and it highlights the underlying problems in the UK economy.It’s the first fall since the end of 2015, and it highlights the underlying problems in the UK economy.
Productivity in the services sector shrank by 0.6%, wiping out the benefits of a 0.2% rise in manufacturing productivity.Productivity in the services sector shrank by 0.6%, wiping out the benefits of a 0.2% rise in manufacturing productivity.
As this chart shows, productivity has been persistently, and disappointing, weak since the financial crisis:As this chart shows, productivity has been persistently, and disappointing, weak since the financial crisis:
Britain’s productivity is much weaker than the US, France or Germany, as our workers have to put in more hours to achieve the same economic output.Britain’s productivity is much weaker than the US, France or Germany, as our workers have to put in more hours to achieve the same economic output.
It’s called the “productivity puzzle”, because economist can’t agree what’s caused it.It’s called the “productivity puzzle”, because economist can’t agree what’s caused it.
One factor is that more people are being employed in low-paid, insecure jobs, where they produce relatively little economic output. Another theory is that companies have resisted buying expensive machinery that would boost productivity, preferring to employ more people instead.One factor is that more people are being employed in low-paid, insecure jobs, where they produce relatively little economic output. Another theory is that companies have resisted buying expensive machinery that would boost productivity, preferring to employ more people instead.
Whatever the reason, it suggests that something rather nasty happened to the UK economy a decade ago when the financial crisis struck./Whatever the reason, it suggests that something rather nasty happened to the UK economy a decade ago when the financial crisis struck./
UK productivity edges back down below Q4 2007 peak in Q1 2017. Full lost decade almost here... pic.twitter.com/RbR9kLTW8fUK productivity edges back down below Q4 2007 peak in Q1 2017. Full lost decade almost here... pic.twitter.com/RbR9kLTW8f
10.21am BST10.21am BST
10:2110:21
Sign up to our emailSign up to our email
Guardian Business has launched a daily email.Guardian Business has launched a daily email.
Besides the key news headlines that you’d expect, there’s an at-a-glance agenda of the day’s main events, insightful opinion pieces and a quality feature to sink your teeth into each day.Besides the key news headlines that you’d expect, there’s an at-a-glance agenda of the day’s main events, insightful opinion pieces and a quality feature to sink your teeth into each day.
For your morning shot of financial news, sign up here:For your morning shot of financial news, sign up here:
10.21am BST10.21am BST
10:2110:21
Duncan Brock of the Chartered Institute of Procurement & Supply blames political uncertainty for the drop in UK service sector growth last month.Duncan Brock of the Chartered Institute of Procurement & Supply blames political uncertainty for the drop in UK service sector growth last month.
“A creeping doubt appears to be the cause of this month’s below par performance as the UK’s departure from the EU and the unpredictable political climate continues to impact on consumers and businesses alike.“A creeping doubt appears to be the cause of this month’s below par performance as the UK’s departure from the EU and the unpredictable political climate continues to impact on consumers and businesses alike.
“Strong growth in new orders and overall activity was destabilised by a reduction in business optimism, which fell to one of the lowest levels since 2011.“Strong growth in new orders and overall activity was destabilised by a reduction in business optimism, which fell to one of the lowest levels since 2011.
10.19am BST10.19am BST
10:1910:19
Despite the slowdown, service sector companies kept hiring staff last month.Despite the slowdown, service sector companies kept hiring staff last month.
However... some reported that it was difficult to find workers with the skills they need.However... some reported that it was difficult to find workers with the skills they need.
10.18am BST10.18am BST
10:1810:18
In another blow, UK service sector companies were hit by a steep increase in their costs in June.In another blow, UK service sector companies were hit by a steep increase in their costs in June.
Markit explains:Markit explains:
Greater operating costs were linked to a combination of rising staff salaries and increased raw material prices (particularly food and imported items).Greater operating costs were linked to a combination of rising staff salaries and increased raw material prices (particularly food and imported items).
Survey respondents noted that intense competition for new work continued to place pressure on pricing power. Reflecting this, the latest rise in average prices charged by service providers was the slowest since July 2016.Survey respondents noted that intense competition for new work continued to place pressure on pricing power. Reflecting this, the latest rise in average prices charged by service providers was the slowest since July 2016.
10.05am BST10.05am BST
10:0510:05
Service sector slowdown: Snap reactionService sector slowdown: Snap reaction
Ed Conway of Sky News says this morning’s data paints a worrying picture of the UK economy:Ed Conway of Sky News says this morning’s data paints a worrying picture of the UK economy:
Poor economic tidings today: car sales dropping, services sector weakening, productivity falling. Paints picture of a stuttering economyPoor economic tidings today: car sales dropping, services sector weakening, productivity falling. Paints picture of a stuttering economy
Duncan Weldon of Resolution Group points out that Britain’s economy is lagging, just as the eurozone posts its best quarter in six years:Duncan Weldon of Resolution Group points out that Britain’s economy is lagging, just as the eurozone posts its best quarter in six years:
Shorter PMIs: UK economic momentum is slowing, Eurozone accelerating.Shorter PMIs: UK economic momentum is slowing, Eurozone accelerating.
Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking, says the “uncertain political backdrop” is hurting UK firms:Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking, says the “uncertain political backdrop” is hurting UK firms:
Many businesses may have delayed investment decisions in the face of an ambiguous political landscape.Many businesses may have delayed investment decisions in the face of an ambiguous political landscape.
“The continued rise in inflation and the general uncertainty is denting consumer confidence which may impact on demand. The question remains as to how much businesses will be looking to invest during the rest of the year to help stimulate demand.“The continued rise in inflation and the general uncertainty is denting consumer confidence which may impact on demand. The question remains as to how much businesses will be looking to invest during the rest of the year to help stimulate demand.