Member Article

Confidence signals 'end of recession'

Business confidence is at a much higher level than expected, according to an industry body.

The record recovery in confidence signals that ‘the UK’s recession is at an end’, says the Institute of Chartered Accountants in England and Wales.

The confidence measure went from -28.2 to 4.8, the largest quarterly jump since the Business Confidence Monitor survey began in 2003.

Based on the results of its survey, the organisation now predicts that economic output will rise 0.5% this quarter.

ICAEW chief executive Michael Izza said: “This quarter’s BCM suggests that the UK recession is at an end. While there is no doubt that the UK economy is on its way to recovery, we shouldn’t underestimate the challenges ahead for businesses.”

The survey found businesses expected a rise in 13 out of the survey’s 14 key financial performance indicators in the coming 12 months, in contrast to earlier in the year when most were expected to contract.

The results of the survey come after a worse-than-expected 0.8% decline in the UK’s economy between April and June, indicating that the ICAEW’s predictions may be premature.

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