6
Apr
Signs of hope for UK businesses
Conditions are improving for British businesses, two new reports
suggest.
Companies surveyed for the Access to Finance report from
employers' group the CBI were less negative in March than they had
been in February.
Also, there was a small rise in short term confidence in March
measured by the accountants BDO Stoy Hayward.
But unemployment was forecast to rise from 6.5% to 7.6% over the
next three months, meaning an extra 350,000 people would be out of
work.
In the CBI report, 36% more firms said the availability of
credit had deteriorated over the past three months than said it had
improved.
But that figure was well down on February's margin of 59%.
BDO's Business Trends report showed a modest increase in
confidence based on whether companies expect good revenue from
orders.
While it only rose from 88.3 in February to 88.6 in March, it is
a big improvement on recent big falls.
"Until now, confidence has been in freefall, and while
conditions in the employment market will worsen in the coming
months, some businesses are starting to view the future with less
trepidation," said Peter Hemington from BDO Stoy Hayward.
"The indicators suggest that we're unlikely to face a
1930s-style depression and the increased pressure that has been
applied on banks to increase their lending is starting to bring
about the desired effect."
article from bbc.co.uk/news Monday 6th April 2009