Food and drink business confidence report Q3 2020
10 November 2020
FDF is continuously working to ensure that our members' views are continually shared with government and other stakeholders, and our business confidence surveys are a vital part of this.
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- The latest FDF Business Confidence survey shows that net business confidence bounced back in Q3, reaching 19.1% as lighter COVID-19 restrictions allowed food service to reopen. This followed record low confidence in Q2.
- Businesses continued to experience increased costs in Q3, from higher packaging raw material and packaging producer responsibility costs to ingredient and label change expenses.
- Increased costs alongside fluctuations in the exchange rate and staff absenteeism were key factors leading to 40% reporting reduced product margins in Q3.
- Over a third saw increased output, cash flow and domestic retail sales in Q3.
- Businesses are relatively pessimistic about UK economic conditions in 2021, with over half expecting economic growth, exports and business confidence to decrease, while over three-quarters expect the unemployment rate and prices to rise.