UK business optimism ‘eroded’
Published : July 2008
UK business confidence is at its lowest for 16 years, according to a survey by accountancy firm BDO Stoy Hayward
The Business Trends Report revealed that business confidence in June fell to its lowest – 97.7 - since June 1992. The figures indicate the annualised economic growth rate for the next quarter to be 1.3 per cent – far below that of the Chancellor’s forecasted growth rate of between 1.75 per cent and 2.25 per cent for 2008.
Peter Hemington, partner at BDO Stoy Hayward LLP, said: “We’ve not seen short term business confidence plunge this low since Black Wednesday in 1992, indicating that UK businesses of all shapes and sizes are struggling to see any light at the end of the tunnel. With confidence at a 16 year low, an interest rate rise next week aimed at curbing inflation could be crippling for business, and could worsen the effects of the economic slowdown. Our figures suggest that the MPC will be left with little choice next week other than to leave interest rates unchanged.”
