Report
Food and drink business confidence report Q3 2020
Published: 02 December 2020
Topics
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.
- 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.