Rise in service sector confidence due to vaccine rollout, says BDO

The UK’s service sector is reportedly receiving a surge in renewed confidence due to the vaccine rollout and easing of lockdown restrictions, according to BDO’s Services Optimism Index.

Confidence rose by 1.36 points in April from 98.50 to 99.86, primarily due to the lifting of restrictions on indoor entertainment venues including restaurants, children’s play areas and the rest of the hospitality sector, including hotels and hostels.

Kaley Crossthwaite, a partner at BDO, said: “The latest figures show that most businesses anticipate the country will continue unlocking as planned.

“The government’s comments in recent weeks reflected this sentiment, which will have fueled the rise in optimism as most businesses return to relative normality.”

She added: “It’s important to remember that we are still recovering from an incredibly low base. At this time last year we were at the height of the first lockdown with the vast majority of businesses closed.

“Lingering concern around the impact of Brexit on supply chains means that our recovery might not be as quick as it might have otherwise been, but overall this is much needed positive news for businesses across all the regions and nations of the UK.”