26/08/2010
Business confidence has risen to its highest level since 2007, according to a new report.
The Business in Britain Confidence Index, compiled by Lloyds TSB, shows that UK businesses are becoming more confident about their sales and profitability. This increased positivity is attributed to increased foreign sales, with 42 per cent of companies surveyed reporting that they expected an increase in this arena.
The quarterly index reported that from April to June 2010, businesses showed an 18 per cent net positive balance, the highest level since 2007 according to IFA Online.
Bringing a considerable boost to the British manufacturing industry was the revelation that the sector was the most confident industry surveyed, with 33 per cent of respondents reporting increased sales and profit expectations.
Looking at regions, London and the South East unsurprisingly topped confidence levels, with 25 per cent of businesses looking to the future with optimism.
Managing Director at Lloyds TSB Commercial, John Maltby, was cited in FT Adviser as commenting on the Index, saying: ''It is clear that many firms now see better sales and profitability on the horizon but it remains a confidence tinged with caution.''
Speaking to IFA Online, Trevor Williams, chief economist for wholesale markets at Lloyds TSB Commercial, added ''The UK is on the road to recovery, led by improvements in business confidence. Export sales, in particular, have risen strongly, helped by the rebound in global demand as well as the sustained fall in the pound.''
''If confidence holds up, we should avoid the double-dip that many have feared.''
Sarah Howard