Business confidence at highest level since 2009
May 03 2011
Confidence is on the up
Business optimism has returned to a level not seen since October 2009 but small companies are much less confident than large firms.
The Business Confidence Index (BCI) is at 108 points, according to workplace provider Regus, which published the findings from over 4,000 UK businesses in its latest Business Tracker report.
However, confidence among small companies is measured at 103 in the Index, compared to 125 among large organisations.
The report reveals that 26 per cent of small businesses saw profit rises in the last year, while 51 per cent of large companies surveyed reported an increase in profits, perhaps accounting for the marked difference in confidence levels.
Companies remain cautious in their forward projections, with only 27 per cent expecting the economy to advance strongly in the second half of 2011.
While 60 per cent of companies do not think momentum will pick up until the first half of 2012, the report reveals that 69 per cent of businesses predict revenue growth in the next 12 months.
Regus’ regional director, Celia Donne, says the results are ‘good news’ for the UK economy. ‘Although the Business Tracker highlights the extent to which small business is bearing the brunt of the weak economy, it is encouraging that their profit expectations are as buoyant as their larger counterparts,’ she adds.
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