Economy ‘teetering on knife edge’ as business output shrinks

Business output and confidence fell last month as employers put the brakes on hiring amid growing economic uncertainty. According to a report by accountancy firm BDO, business output fell by 2.05 points to 94.30, marking its lowest reading since February last year when the UK’s output was curtailed by a third national lockdown. The figure is now below the 95 level that indicates annual growth, suggesting that UK output is now contracting. A separate survey from the Institute of Directors found the level of businesses reporting a strengthened order book fell sharply from 41% in July to 29% last month. “The economy is teetering on a knife edge,” Kitty Ussher, the institute’s chief economist, said. The Times (£)