TPT March 2017

G LOBA L MARKE T P L AC E

G LOBA L MARKE T P L AC E

As noted by business reporter Szu Ping Chan of the Telegraph, the British results compare with a global average of 85 per cent and are higher than those in five advanced economies including the US, Germany and Japan – where 88 per cent, 77 per cent and 66 per cent of chief executives, respectively, expressed confidence about the ensuing year. (“British Bosses Are More Upbeat About Business Prospects This Year Than Almost Every Other Major Advanced Economy,” 16 January) PwC’s survey of 1,379 global CEOs showed that the British bosses remain “in hiring mode.” Sixty-three per cent said they expected to take on more staff over the coming year while just ten per cent expect their workforces to shrink, down from 20 per cent in 2016. The Telegraph pointed out that, according to PwC, Britain also punches above its weight in terms of its global business standing. The London-based multinational professional services firm said the UK was the fourth most important country for world growth, behind the US, China and Germany. › Wrote Ms Szu, “In a further sign that UK companies will continue to drive economic growth through hiring and investment, the global accountancy firm said 95 per cent of CEOs were optimistic about business prospects over the next three years.” This is unchanged from the PwC polling results from 2016, and is also above the 2017 global average of 91 per cent. In still another encouraging note, PwC observed that CEOs in the top three global growth engines – the US, China and Germany – were among the most enthusiastic about investing in the UK. In a steel magnate’s vision, volume manufacturing of bicycles returns to Britain As well as large parts of Tata Steel and the Caparo niche engineering business, Sanjeev Gupta, founder and chairman of the London-based steel products group Liberty House, has also acquired Birmingham-based Trillion Cycles and plans to launch a new range of bicycles. The venture (for which the headquarters staff of Tube & Pipe Technology publisher Intras Ltd will have a ringside seat) has a double thrust: the restora- tion of the bicycle manufacturing industry in Britain, considered by Mr Gupta to be its rightful home; and, more broadly, the re-energisation of British manufacturing. “We have an engineering plant at Leamington Spa to make the bikes,” Mr Gupta told industry editor Alan Tovey of the Telegraph . “And we will increase [their] UK content as our manufacturing businesses expand the capability to produce the parts.” The industrialist described by the Telegraph as “a cheer- leader for UK engineering” said he is encouraged by the Government’s efforts to boost manufacturing and believes that Brexit will strengthen the sector. The presentation of the first

The Uni ted Kingdom On the eve of a key speech on moving forward on Brexit, the UK is identified by the IMF as the fastest-growing G7 economy The International Monetary Fund had predicted that the economy of the United Kingdom would grow by 1.1 per cent in 2017. On 16 January, however, IMF economists revised that assessment, predicting instead 1.5 per cent UK growth this year. The 0.4 percentage point upgrade is the largest upward revision the Washington-based international body made in its latest report. The change was attributed mainly to “a stronger than expected [British] performance during the latter part of 2016.” Preliminary IMF findings for the full year 2016 indicate that the UK economy grew by 2 per cent, making it the fastest- expanding of the major advanced economies: ahead of Germany at 1.7 per cent, the US at 1.6 per cent, Canada and France at 1.3 per cent, and Italy and Japan – both at 0.9 per cent. The European Union bloc as a whole was expected by the IMF to record growth of 1.6 per cent for 2016; global growth, 3.1 per cent – consonant with earlier IMF projections. In her eagerly awaited 17 January landmark speech on Brexit, British Prime Minister Theresa May gave the clearest indication to date of Britain’s plans for departure from the European Union, which were set in motion by last June’s referendum on the nation’s EU ties. Coming just a day before, the revision upward of the IMF’s outlook for the UK in 2017 would have helped confirm Mrs May in her vision of Britain as “a great global trading nation.” Optimistic British CEOs are set to capitalise on the attraction the UK holds for the rest of the world It seems that the upbeat frame of mind of mid-January was not confined to the higher echelons of British government. The publication of the latest PricewaterhouseCoopers (PwC) annual poll of global executives found that British bosses are more optimistic about their business prospects this year than their counterparts in almost every other major advanced economy. Only executives in Canada reported having a sunnier outlook. Some 89 per cent of the 126 UK chief executives surveyed by PwC said they were confident about the business outlook for 2017. This is the highest result for that cohort since 2013, and up from 85 per cent in 2016.

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MARCH 2017