The number of UK businesses reporting rising sales hit a record high this year, boosting business confidence to its highest level in almost 15 years, it has been claimed.
Research released today by Lloyds TSB Corporate Markets found that, during the first half of 2007, the number of companies reporting higher rather than lower sales reached its highest level since the survey began in 1992.
What’s more, despite assumptions of further interest rate increases, expectations of profit reached their highest level in a decade, the survey found
However, the research showed signs of a weakening export market, suggesting that current strength of the pound is beginning to take effect, Lloyds TSB said.
On balance, the number of firms reporting higher exports to non-European countries fell to just 12% from 19%, the survey revealed.
Diana Brightmore-Armour, chief executive officer of Corporate Banking and co-head of Corporate Markets at Lloyds TSB commented: “2007 is shaping up to be a great year for businesses. Sales hit such a high in the first half that the prospects for further growth by the end of the year are very strong - and the effect this has had on business confidence is clear for all to see.
“Signs of a decline in exports are not to be dismissed, but nevertheless, the overall effect on order books is bound to be limited, propelled by strong UK demand and a stable European economy.”
A separate study by accountancy firm PKF has also found that, in the second quarter of 2007, small and medium-sized businesses in the construction, manufacturing and service sector experienced their sharpest increase in overall activity for three years.
Stuart Barnsdall, PKF partner for growing business, said: “Overall, growth remains robust and new orders continue to increase in conjunction. In support, recruitment of new staff continues at a pace.”
© Crimson Business Ltd. 2007
