Firms positive - about other firms

Businesses are now feeling more positive about the UK economy, yet remain uncertain about prospects for their own growth

The latest survey for the Charterhouse Research Business Confidence Index that monitors businesses’ views of the current health of the UK economy has risen from 40 to 43, reversing the fall in confidence recorded in the previous quarter.

Also the index of future UK economic prospects has increased from 49 to 53. However, the survey has shown a two point drop in the index tracking businesses’ views of their own prospects, from 64 to 62.

Mark Dennis, Director at Charterhouse Research, said: “The increase in the Business Confidence Index is a great sign and has been driven by businesses feeling more positive about the UK economy and fewer businesses now feeling negative about the economy than three months ago.

“However, we can’t ignore the fact that there is less confidence at a micro level, as fewer businesses are expecting their own sales to grow over the next six months.”

Some of the key findings within the recent Business Confidence Study are:

• More business feel positive about the UK economy – up from 24% to 26% from three months ago - and fewer businesses feel negative - down from 50% to 43%.

• Businesses are also more bullish about the UK economy in six months time – more now think it will be better (33%) than worse (16%).

• Fewer businesses think their own business will grow over the next six months (43%, down from 50%) – most expect business to be static (44%) or even decline (9%).