Business confidence in UK is ‘improving’

Confidence among UK business is continuing to improve, according to a recent survey.

The Business Confidence Monitor is conducted quarterly and is released by a professional body for accountants, said that confidence is at its highest level since 2010.

The study also forecasts stronger economic growth in the second quarter, despite a slow start to the year. Estimates suggest the British economy grew by 0.3% in the first three months of this year.

The accountants’ trade body ICAEW and business advisory firm Grant Thornton said improved business confidence would boost the economy further, prompting the estimate in the economy’s growth.

Michael Izza, chief executive of ICAEW said: “There is a gradual improvement in the economy and the recovery is starting to stand on more solid ground. We should not be complacent though. There is still a degree of fragility and the economy is susceptible to knock-backs from events outside the UK.”

The survey also found that confidence was up across all sectors and across all parts of the country. But it also found that plans for growth in business investment remained weak.

Consumer spending also remains under pressure, due to a fall in earnings and an increase in prices.

In April, the International Monetary Fund (IMF) asked Chancellor George Osborne to reconsider the pace of the government’s austerity programme, due to the slower than expected growth rate.

A meeting will take place later this week in which the IMF will see the Treasury, the Bank of England, the Office for Budget Responsibility and independent economists.

The UK economy recently avoided a triple dip recession.

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