Business confidence has risen for the first time in two years suggesting that the economy could be on the mend, a new survey has found.
The Institute of Chartered Accountants reports that confidence has grown by over 17 points since the first quarter of 2009 and says that this could be the first step in Britain’s economic recovery.
The survey’s finding follows indications that decline in the housing market is ending and the general belief that the worst is over for the financial sector.
Indeed confidence in the finance sector is strongest of all – up 30 points to minus 16. Similarly, positivity in the property and construction sector has risen and now stands at minus 20 compared to nearly minus 60 at the start of the year.
However, the hotel and catering sector remains the most negative sector with a score of minus 48.7, as consumers continue to avoid spending on luxuries.
ICA chief executive Michael Izza thinks that businesses have learned lessons from previous recessions and that this know-how is speeding the turnaround in the economy.
“The rise in confidence is a positive step, indicating a reversal in the trend of falls we’ve seen in confidence over the last six quarters,” he says.
“The underlying data suggests that companies have heeded warnings, taking the right steps to ensure their businesses are positioned to survive the downturn. They are managing the consequences of the global recession remarkably well.
“While the change in outlook is encouraging, I still believe that difficult times lie ahead. I would urge businesses to not be complacent and be measured in any steps they take in response to an economic recovery.”
© Crimson Business Ltd. 2009