Oil & Gas UK’s Business Sentiment Index for the second quarter of 2015 published today shows that industry remains fragile but that companies’ outlook is improving.
Pessimism has moderated with respondents returning a score of minus-27 on a -50/+50 scale, up four points from minus-31 reported by the survey in the first quarter of the year.
The index measures economic indicators including business confidence, activity levels, business revenue, investment and employment.
OGUK operations director Oonagh Werngren, said: “While the overall index remains in negative territory for the fourth quarter in a row, this slight improvement in mood is the first upward movement we have seen since Q1 2013.
“A large number of companies are concerned about a further decline in activity, the challenge of managing costs and how these factors will impact employment.
“On the other hand, a few respondents have reported higher activity than in the first quarter which may be due to preparations for the annual summer maintenance programmes when activity levels traditionally increase on the UK Continental Shelf.”
Werngren said some companies are beginning to see the results of cost savings and efficiency improvements.
She added: “For small to medium enterprises (SMEs) the main issue is ensuring they are paid in a timely manner, a principle enshrined in the industry’s Supply Chain Code of Practice – a key tool for the industry to help ensure its cost base remains competitive.”