Helping CFOs plan through changeable conditions

The health of the UK economic scene is improving again, as the Accountagility Index figure for January shows a bounce back to positive territory to 5.20, up from 4.99 last month. This figure beats the June 2016 level which was recorded before the Referendum.

Any figure above 5.00 is positive.

January Brexometer Reading

There were three factors pushing the Brexometer reading upwards:

  • UK markets soaring to new highs as the FTSE 100 clears 7,000
  • Business confidence reaches a peak last seen in mid-2015
  • Emerging information on the timing of the invocation of Article 50 and the UK approach to Brexit negotiations

The Accountagility Index Rating for January

Meanwhile concerns remain with sterling still under pressure, inflation rising and Foreign Direct Investment figures do not yet reflect a number of recent good news stories about investment in London.

What will next month’s reading hold in store? Will the government hold its course on Article 50? Can the Index stay in the black?

Keep in touch with us and find out.

What makes up the Accountagility Index (AAX)?

The data used to calculate the Accountagility Index are based on eleven key factors, all derived from a diverse range of independent and credible sources​

  • UK economic growth – A key building block of UK prosperity
  • Markets – Reflects the health of larger British companies
  • UK inflation – An important measure which needs to be carefully monitored
  • Sterling strength – Affects imports, exports and confidence
  • UK employment – Impacts so many aspects of UK economic activity
  • UK Debt ratio – Tracks the UK’s progress against long term balancing of the books
  • FDI (Foreign Direct Investment) – Illustrates the practical confidence levels from outside the UK
  • Sentiment – Can be often the most important factor in how the economy is perceived
  • Political stability/environment – A must include measure which can have instant impact on the big picture
  • Progress on Brexit negotiations – Casts a very long shadow over all things
  • Progress of International trade talks – A vital indicator of the UK’s international positioning