UK leading Europe out of economic downturn

Analyst predicts 'mini boom' as increasing confidence fuels recovery

The UK is leading Europe out of the gloom, as increasing confidence fuels the economy.

According to research from BDO Stoy Hayward, Europe as a whole is seeing sustained growth, but the UK will continue to outperform other European countries for the next few months.

"The momentum in the UK economy is building. Concerns about a downturn have been moved away and people are confident," said Chris Grove, corporate finance partner at BDO.

"A few months ago reports were unsure whether the growth was sustainable in the short term, but business confidence is now being shown in increased orders and, in turn, by investment in infrastructure.

"A raft of factors are coming together to make a mini boom."

Grove highlighted the value of sterling against the dollar and the strength of the euro as other major factors, meaning UK companies can compete in Europe and buy cheaply from the US.

Alex Kaye, managing director of AK IT Solutions, agreed confidence had returned, but said it was part of a natural cycle, with firms updating equipment bought for 2000.

"Two years ago we experienced our record year; now we're treading water. Everyone is talking a good talk, but I've yet to see the boom back in IT," he said.