Member Article

UK businesses 'more optimistic'

Firms are upbeat about their growth prospects for this year despite a dip in optimism about the economy as a whole, according to a report. Strong European growth and robust domestic demand are improving the outlook for British companies, a study has found. A survey of 200 firms by Lloyds TSB showed that almost three out of four believe their business activity will increase in the coming months.

Trevor Williams, Chief Economist at Lloyds TSB Corporate Markets, said: “UK businesses have good reason to be optimistic. “Over the coming 12 months we can expect to see the UK economy gaining strength, with the possibility that GDP could rise by around 3% after posting an increase of 2.7% in 2006. “This growth is being driven by strong demand in Europe, our key export market, which accounts for 55% of our overseas sales. “Demand has also been strong in the UK, which has, in turn, allowed firms to pass on price increases. “As well as this, we’re witnessing a boom in business investment and accelerating consumer spending, providing a solid foundation for rising business confidence.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .