Business optimism dips in the UK

News Article - Wednesday, March 19, 2008

filed under: Business

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Optimism among the UK business community in the country's economy has fallen slightly, new figures show.

A report by Lloyds TSB reveals that widespread economic uncertainty has caused business confidence in the economy to wane this February, falling for the sixth month in a row.

According to the latest Lloyds TSB Corporate Markets Business Barometer of 200 companies, 51 per cent of businesses report that they are less optimistic than they were three months ago about the prospects for Britain's economy, while just 28 per cent feel more confident of the outlook, down from 35 per cent in January.

Data collected following the global credit crunch indicates that business optimism has plummeted to a six-year low, with the balance of firms feeling less confident in the economy at 23 per cent.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, commented: "Firms' concern over the wider economy has not been helped by the spate of weakening economic news coming from the housing market and falling consumer confidence."

However, many firms remain confident about their own prospects for the rest of 2008 and more than half (58 per cent) of firms polled forecast an increase in business activity over the coming year, compared with just ten per cent who expect a decline.

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