UK businesses are feeling more optimistic about the future, as energy prices fall and a boom in artificial intelligence (AI) spending looms. The latest survey of business sentiment from the Confederation of British Industry (CBI) showed that firms were increasingly upbeat about their prospects for the coming months.
The CBI’s monthly industrial trends survey found that optimism among UK companies had risen to its highest level since February 2020, with 44% of respondents expecting output to increase over the next three months. This was up from 36% in March 2021 and well above expectations for a reading of 39%.
The survey also revealed that manufacturers’ orders had increased at their fastest rate since December 2017, while export orders rose at their strongest pace since April 2018. Companies reported an improvement in demand both domestically and overseas, with domestic orders rising at their quickest rate since August 2019.
Meanwhile, energy costs have been falling due to lower oil prices and government subsidies on renewable sources such as wind power. This has helped reduce production costs for many businesses across all sectors – particularly those operating in manufacturing or transport – allowing them to invest more money into other areas such as research & development or marketing activities.
At the same time, AI is becoming increasingly important for businesses looking to stay competitive in today’s digital world. Investment into AI-related technologies is expected to grow significantly over the next few years; according to PwC estimates it could reach $232 billion by 2025 globally – almost double what it was last year ($125 billion). As a result, many companies are now investing heavily into AI-based solutions which can help automate processes and improve efficiency within organisations – something which could be key if they want to remain competitive going forward.
Overall then there appears to be good news ahead for UK businesses: not only are energy costs falling but investment into new technologies like AI should help keep them ahead of competitors too – making this an exciting time indeed!
|UK bosses grow more optimistic as energy prices fall, and AI spending boom looms|Economics|The Guardian
