Businesses downbeat in June

09-07-2007

Businesses downbeat in June
British companies are pessimistic about prospects for their business in the next year despite showing optimism in the UK economy, according to Lloyds TSB.

The bank's monthly business barometer showed a collapse in confidence, with the percentage of companies expecting their activities to improve in the next year falling from 61 per cent in May to 45 per cent in June.

By contrast the balance of businesses upbeat about the UK economy rose from 20 per cent to 29 per cent.

Lloyds TSB Corporate Markets' chief economist Trevor Williams said that, notwithstanding the survey's apparently paradoxical findings, an overall trend could be established.

"Despite firms' apparent upturn in confidence in the strength of the UK economy, it is obvious that they are increasingly apprehensive about the future," he explained.

"Sentiment seems to be that the combination of higher interest rates, a stronger pound and a reacceleration of input costs will squeeze profit margins."

The service sector saw the worst fall in improved expectations, down from 76 per cent to 39 per cent one month later.


Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure