Business confidence rebounded in August after a sharp drop following the EU referendum in July, according to a report from YouGov and Cebr.
The monthly UK Economic Index had revealed a sharp drop in July but the recovery in August could be seen as the latest sign that some of the confidence lost in the aftermath of the referendum has been recovered.
The proportion of businesses that were optimistic about their own prospects over the next 12 months rose to 48% in August, up from 46% in July
The index rose to 109.7 in August from 105 in July. Confidence was lower than before the EU vote however, with the index at 112.6 in June.
Scott Corfe, director at Cebr, said: “The dust is settling on the EU vote and businesses are showing signs of resilience, for now at least. With the post-Brexit panic abating and many indicators signalling a reasonably robust short-term outlook, businesses are suggesting a greater confidence for the coming 12 months when it comes to their own operations.
“However, one red flag in these figures is the level of pessimism about the UK economy that the Brexit vote has engendered in British businesses. If these concerns materialise into reality, businesses could rapidly rein in their investment and hiring plans.”