UK Business confidence is improving but economic growth remains stagnant

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Despite slow economic growth, Business Confidence Monitor says confidence is at highest level since 2010. Love Energy Savings comments.

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The best thing UK business can do is to continue to make sensible investments and focus on having a well-controlled cash flow.

Business confidence is up in all sectors and all parts of the UK, likely to increase again in the second quarter of 2013, says report from the accountants’ trade body ICAEW and advisory firm Grant Thornton.

They believe the improved confidence should boost the economy and predicted growth of 0.6% in the second quarter.

Michael Izza, chief executive of ICAEW, said the economy is in “gradual improvement” and the climb away from the recession was “starting to stand on more solid ground”.

He also added: “We should not be complacent though, there is still a degree of fragility and the economy is susceptible to knock-backs from events outside the UK.”

The report found that business investment and consumer spending was low, with real-term income down due to price rises outpacing wage increases.

As part of its annual UK review, an IMF delegation is coming to the UK later this week to have talks with the government about its economic policy.

It is expected they will make recommendations with the aim of promoting growth rather than combating the budget deficit, fearing the size of the cut backs is preventing growth.

Chancellor George Osborne’s plan of austerity has seen some much needed support recently after slight growth in the economy and avoidance of a triple-dip recession helped to boost the UK’s confidence.

He is also planning on expanding the Bank of England’s Funding for Lending Scheme (FLS) to help boost further growth.

Jonathon Stead, Marketing Executive at Love Energy Savings said: “While we are starting to see signs of recovery, even Nick Clegg is warning us not to get ahead of ourselves. The best thing UK business can do is to continue to make sensible investments and focus on having a well-controlled cash flow.”

He added: “Many companies roll over to more expensive energy contracts without realising every year, Love Energy Savings could reduce your business electricity or business gas rates by up to 40%”

Love Energy Savings provide free online business energy comparisons, so companies can see their savings without picking up the phone or providing any personal details. Businesses with high energy bills should visit http://www.loveenergysavings.com to get an instant, online comparison.

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