May 31, 2011
For the first time in 12 months, optimism is prevalent amongst British businesses, as a new survey discovers that business confidence has increased for the first time in over a year.
Respondents surveyed by the Institute of Chartered Accountants in England and Wales (ICAEW) said that as well as business confidence returning once again, Financial performance has also improved compared to a year ago.
Between February and April, the Business Confidence Monitor Index saw a rise of 4.1 to 13.7 in the period, reversing four consecutive quarters of declines, said the ICAEW.
"Businesses are more optimistic about the future and this is reflected in their forecasts for turnover and profit growth,” said Michael Izza, Chief Executive of ICAEW. “They are, however, wary of the reality that the recovery is going to be slow. As a result, there is greater caution over making long term commitments and investment."
And while sectors such as Manufacturing and Engineering are finally displaying confidence after more than two years of deep pessimism, the retail sector is still struggling, as the squeeze on consumer spending dampens forecasts, said the IACEW.
The findings came as a separate survey showed an improving mood among consumers, with the public growing less worried about the outlook for their finances as mortgage holders judge interest rates will remain low for some time, according to the Telegraph.
