Scottish Daily Mail

Business reeling from double trouble

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BUSINESSES are set for a tough start to 2022 as they grapple with the spread of Omicron and rising inflation.

Directors’ optimism for the year ahead slipped in December, according to accountanc­y firm BDO, and is expected to stagnate amid supply chain problems.

Omicron concerns and renewed restrictio­ns also derailed progress in production, as BDO’s Output Index slid back from November’s four-month high in the largest drop since August. However, it remained above the 95-point reading which indicates growth, at 109.76.

Kaley Crossthwai­te, a partner at BDO, said: ‘Ongoing uncertaint­y around Omicron is providing a further blow to UK businesses.’ But in a glimmer of hope, separate figures from trade body Make UK and accountant PwC showed 73pc of manufactur­ers were expecting conditions in their sector to improve throughout 2022.

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