24
Aug
Recession in Britain 'at an end'
Confidence among business professionals has surged, suggesting
the recession is at an end, a survey has said. The Institute of
Chartered Accountants' index of business confidence rose to 4.8 at
the end of June, from -28.2 in March, the biggest rise for two
years.
However, chief executive Michael Izza warned against
"underestimating" the challenges ahead for businesses. The
institute predicts the UK economy will grow by 0.5% in the third
quarter. Its forecast comes after the economy shrank by 0.8% in the
second quarter of the year. More than 1,000 chartered accountants
were surveyed across England, Wales and Scotland. "This quarter's
Business Confidence Monitor suggests that the UK recession is at an
end," said Mr Izza. "While there is no doubt that the UK economy is
on its way to recovery, we shouldn't underestimate the challenges
ahead for businesses." About 41% of senior professionals were more
confident about their business prospects in the next year, but only
6% were much more confident, indicating that some caution remains.
IT was the most optimistic sector, followed by banking, finance and
insurance. The institute said the banking sector in particular had
shown "a remarkable upturn given the turmoil of the last two
years". The least confident professions were health and education,
as fears of cuts in the public sector grow.
BBC News. Recession in Britain 'at an end'. [Online].
Available from: http://news.bbc.co.uk/1/hi/business/8217122.stm
Accessed 24th August 2009.