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Wednesday, 22 February 2012

Companies confident in UK economy

Business leaders remain confident that the economic situation in the UK will improve in the coming months, according to the latest poll carried out by the Institute of Directors (IoD).

The survey found that only 35 per cent of the 1,000 business leaders questioned think there is a high or very high risk of a recession in 2012, while they are also confident that any future recession would be mild.

Companies also appear to be relatively optimistic about their own prospects, with 50 per cent expecting higher or much higher revenues in 2012 than in 2011 and 68 per cent expecting profits to increase or remain the same.

Commenting on the results, Graeme Leach, chief economist at the IoD, said the key group to watch is the 'swing vote' – leaders who think there is a moderate risk of a recession.

"Whether this group becomes more pessimistic or optimistic may well be the difference between recession and recovery in 2012. The resounding message from the survey is the critical role of confidence at this stage in the economic cycle," he added.

If the euro-crisis stabilises, confidence could return relatively quickly and companies will dust down business investment and thaw out recruitment freezes put on hold last year, Mr Leach explained.

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Posted by John Oak and Wayne BlyADNFCR-1617-ID-801300041-ADNFCR

Source: The Sales Director News

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