Disruptive forces and uncertainty present biggest risks to growth
Matching their response of six months ago, 86% of UK respondents said the global outlook was improving. In terms of the UK economy, 63% saw improvement, compared with 68% in the last EY survey.
Nevertheless, just 49% of UK executives say domestic earnings are improving, compared with 84% who are feeling more positive about global earnings. Lower domestic growth, combined with rising UK wage costs, Brexit-related disruption and the impact of a weaker pound on import prices, could be behind the disparity.
A third of UK respondents said “disruptive forces” (including technology and competition from non-traditional players) presented the biggest risk to their core business growth. This compares with a quarter of UK executives who ranked “regulatory, geopolitical and policy uncertainty” as their biggest threat. New trade, tariff and anti-trust policies present new challenges; but, companies cannot afford to take their eyes off the horizon.