Belfast Telegraph

Economic confidence slips during quarter two

Margaret Canning

By Margaret Canning

Global economic confidence slipped in the second quarter of 2019 as concerns mounted over US and Chinese trade, according to a survey.

The global economic conditions survey (GECS) from the Association of Chartered Certified Accountants (ACCA) said the fall in confidence had partly reversed a bounce at the beginning of the year.

But it said there had been a fall in its key global orders index in the second quarter, in addition to revealing a drop in overall confidence.

And there were high levels of uncertainty in the US and China - with confidence in the US at its lowest level in eight years, mainly due to trade tensions as tariffs on Chinese imports were increased to 25%.

However, there was no evidence of a recession in the US.

Confidence in the UK economy has also fallen compared to quarter one. And growth was moderate, particularly due to stagnant business investment.

The survey forecast growth of 1% this year - but additionally warned that next year's growth would depend heavily on the Brexit outcome.

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Michael Taylor, chief economist at ACCA, said: "The GECS points to a slowing global economy with significant downside risks reflected in weak confidence."

Belfast Telegraph