UK growth rebound eases recession fears

The UK's economy grew faster than expected in July, easing fears that it could fall into recession, the BBC has reported.

The economy grew 0.3% in July, the UK's official statistics body said, helped by the dominant services sector.

Growth was flat over the three months to July, but this was an improvement on the 0.2% contraction seen in the April-to-June quarter.

This contraction, coupled with some weak business surveys, raised concerns the UK was heading for recession.

An economy is generally deemed to be in recession if it contracts for two quarters in a row.

However, while growth in the services sector - which accounts for about 80% of the UK economy - helped to drive July's stronger-than-expected growth figure, the Office for National Statistics (ONS) warned that the sector remained weak.

"While the largest part of the economy, the services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019," the ONS said.

The British Chambers of Commerce (BCC) also said that concerns remained.

"Although there was a rise in GDP between June and July, the zero growth recorded on the underlying three-month measure points to an economy under pressure from uncertainty over Brexit and weakening global economic conditions," said Suren Thiru, head of economics at the BCC.

"The manufacturing sector remains an area of concern, with tightening cash-flow, concerns over disrupted supply chains and weakening demand in key markets weighing on activity in the sector."

No-deal bill a 'chink of light' for business says Carolyn Fairbairn of the CBI

The BBC have reported that "Progress in passing a bill to stop a no-deal Brexit in parliament has been a "chink of light" for UK business", according to the head of Confederation of British Industry (CBI).

However, Carolyn Fairbairn told the BBC the "cloud has not gone away" for companies until a deal is agreed.

She said many would have to keep stockpiling, even though the bill is likely to be ready for royal assent on Monday.

"The clock is still ticking," she said.

On Thursday, the government confirmed the bill - designed to force the prime minister to seek an extension to the 31 October Brexit deadline - would complete its passage through the Lords on Friday.

The proposed legislation was passed by MPs on Wednesday, inflicting a defeat on Prime Minister Boris Johnson.

However, the government - which wants the UK to leave the EU on 31 October with or without a deal - is seeking support for an election on 15 October.

As a result, Ms Fairbairn said, many businesses would continue to prepare for a potential no-deal.

"So many businesses are stockpiling for 31 October in the same way they did for 29 March at enormous cost and expense," she said.

"It's so wasteful and I think they will have to continue to do that until they know otherwise.

"And I think more and more are deeply concerned about the long-term effect on their competitiveness; they are seeing a loss of market share internationally that is very hard to claw back."

Corbyn fears

The CBI has previously said leaving the EU with a deal is essential to protect the economy and jobs.

And it has said that, despite spending billions on preparing for no deal, many businesses are not ready for the shock it might cause.

A survey from manufacturing lobby group Make UK and the auditors BDO came to a similar conclusion. It found UK firms were less prepared for no deal than in March, while Brexit uncertainty was dragging on demand.

Despite this, Ms Fairbairn said few CBI members viewed the prospect of a Labour government following a potential October election as much better than no deal, citing concerns over Jeremy Corbyn's plans to renationalise industries and hand company shares to workers.

"I think this is a choice no business wants to have to make. In terms of the policies of a Corbyn government, some of them are deeply damaging."

Some politicians have argued that warnings about the potential damage of a no-deal Brexit have been exaggerated.

Before becoming Leader of the House of Commons, Jacob Rees-Mogg said in July that quitting the EU without a deal could result in an £80bn boost for the economy.

He also dismissed as "pure silliness" Treasury forecasts warning of a £90bn hit to the UK - projections that former chancellor Philip Hammond later described as "terrifying".

CIMA CFO Conference; DNA of the future CFO - Wednesday 16th October

The CIMA CFO Conference will gather key decision-makers within different sectors to share their knowledge and expertise on the changing landscape of the finance function.

This conference will present a unique opportunity for our senior audience to network, collaborate and solve the most pertinent business challenges facing the finance function in 2019 and beyond.

What will you learn?

• DNA of the Future CFO
• Today’s CFO vs tomorrow’s CFO – Why CFOs need to think more strategically
• Success and organisational effectiveness for emerging leaders
• Identifying the resources, tools and training required to drive change
• Harnessing the finance function to drive business performance
• Defining the CFO’s innovation journey: How soon is tomorrow?
• How digital disruption is shifting the core finance competency and skill sets in a new direction
• How digital operations will unlock business value creation and a new role for finance
• Latest thinking on how to future-proof the finance function to enhance execution of both its functional and business responsibilities to move the finance function into the 21st century
• Talent acquisition
• How to attract and retain the key skills for your business
• Developing a finance team talent strategy — maximising team engagement and impact

Speakers:

Andrew Harding, Chief Executive – Management Accounting, The Association of International Certified Professional Accountants
Andrew Harding is Chief Executive – Management Accounting of The Association of International Certified Professional Accountants. Prior to this he was Chief Executive of CIMA as it joined forces to create the world’s most influential accountancy Association, representing the full breadth of the profession.

He served as Managing Director of CIMA from 2011 to 2016 and was responsible for the institute’s operational performance. Andrew is a chartered global management accountant, a chartered accountant, and holds an MBA from Henley Business School. Prior to joining CIMA in 2009, Andrew worked for 17 years in professional body education, regulation and management.

Peter Milligan, New Generation Leaders
Career success and organisational effectiveness are enhanced when emerging leaders have the right type of support and challenge to make a smooth transition from technical specialist to manager and leader.

Whether you are stepping up into a bigger role yourself, or a senior leader looking to promote and develop leadership talent, knowing the classic traps, and how to avoid them, will save time, money and energy. Peter will help provide you with powerful insights and useful tools for working with human psychology and culture. That way, you can confidently deliver results while fully enjoying your work and life,



Booking Information

Date	Location	Price
16 October 2019 - 09:30	Central London	Price: GBP 0.00	Book

CIMA CFO Conference; DNA of the future CFO

Increase your employability by attending this conference.

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Date:
Wednesday 16 October 2019

Location:
Royal Horseguards & One Whitehall Place, 2 Whitehall Court, Whitehall, London SW1A 2EJ