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Business confidence at a two-year high
18 August 2010
Business confidence is now at its highest level since 2007, data from the business in Britain confidence index has shown. The quarterly index, compiled by bank Lloyds TSB, recorded a net positive balance of 18 per cent in the April to June quarter, rising from 16 per cent in the previous quarter. The index measures more the outlook for sales, orders and profitability from more than 2,300 firms. Lloyds said renewed optimism had been fuelled by hopes of growing exports and of better profits in the second half the year. John Maltby, managing director at Lloyds TSB commercial, said businesses were genuinely hopeful about the future. He said: "It is clear that many firms now see better sales and profitability on the horizon but it remains a confidence tinged with caution. "Concerns about home-grown demand are unsurprisingly weighing on the minds of business owners whose success depends on domestic markets. "As long as businesses harbour doubts about the economic climate, they will hold back on investment spend and, while there's enough momentum behind the recovery to prevent it faltering, it is likely to be a long haul." Published by FTAdviser
