Confidence on the rise among UK businesses
BDO report claims the UK economy has bounced back since July
Unpredictable fortunes for UK firms has seen business confidence yoyo during 2005, but new research from accountancy firm BDO Stoy Hayward has revealed the UK economy has bounced back since July.
BDO’s latest Business Trends Report found that firms have remained resilient despite economical pressure from high oil prices and lower consumer spending.
Interest rates are expected to remain fixed allowing economical growth of just over three per cent in the second quarter of 2006. Business optimism also rose between July and October, while inflation has fallen.
But Douglas McWilliams, chief executive of the centre for economics and business research at BDO, warned that business confidence can dip as quickly as it has risen.
“UK businesses have been resilient in the face of the challenges they have faced over the past quarter. The latest results show that the economy faces continuing uncertainty over the coming months,” he said.
Mike Lawrence, managing director at VAR Bentpenny, said the unpredictable nature of the IT market will continue to leave resellers hesitant.
“It is going to be a close call as there are a lot of businesses who have borrowed heavily and they could get found out. I think there is a downturn coming and I can’t see things getting any better until March,” he said.
“The industry is fickle and we may be busy at the moment, but who knows what the future holds?”