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Business confidence rising, says ACCA

Confidence is increasing among business in the UK, continuing the trend of the last two quarter. It is, however, still behind worldwide expectations, according to research from accounting body ACCA.

ACCA posed questions to around 2,000 experienced finance professionals in the Global Economic Conditions Survey, a study which saw them join forces with the Institute of Management Accountants (IMA), which is based in the US. The survey revealed an impressive improvement in worldwide business confidence.

ACCA economic analyst, Emmanouil Schizas, warned:

“At the global level, the confidence gains recorded in Q1 2013 are much larger than would be expected given improved economic fundamentals and are likely to dissipate. In Europe, the fallout from the Cyprus bail-in will also likely result in a loss of confidence in Q2 – so while the Q1 results are promising, they are likely to be short-lived.”

UK businesses said they saw an improvement in new orders and cashflow, although they aren’t at the same level they reached earlier in the year. Business capacity in the UK, however, which includes investment and capital spending, has decreased substantially during the first quarter.

Schizas explained that the main cause behind the capacity loss in the UK may be a dwindling of business opportunities in Q1, decreasing to levels not unlike 12 months ago. However, he also said that the medium-term trend is flat, and we should, therefore, see stability in capacity.

Business owners can always improve their figures by ensuring that they are working wisely with their finances. Fortunately, there are many contractor accountancy firms, as well as a whole host of further services available for companies to utilise.

Posted by Mark
May 1, 2013
Research & Statistics

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