Businesses expect economic conditions to worsen
Jan 17 2008
Only 18 per cent of businesses questioned in a recent survey expect economic conditions to improve over the course of next year.
Findings from Lloyds TSB Commercial show that fewer companies are hopeful of a strong start to the year for orders, sales and profits compared with the 41 per cent in July who had a positive financial outlook.
John Maltby, managing director, Lloyds TSB Commercial, says: 'There's no doubt 2008 will prove more of a challenge for many firms, but it’s a ride most will be able to endure.'
He adds that 'it's clear that investment spending will be capped, as businesses tighten their financial belts'.
The number of firms that reported higher, rather than lower sales, during the second half of 2007, fell to 26 per cent, from 41 per cent the previous year.
A further four per cent of companies expect higher profits in the first half of 2008 - down from 30 per cent in July 2007.
Meanwhile, research from Access Markets International Partners shows that SMEs increased their spending on IT by eight percent in 2007.