The IT sector is leading a growing confidence among
business professionals, figures unveiled by the Institute of
Chartered Accountants (ICAEW) reveal.
Published on Friday, the latest
ICAEW UK Business Confidence Monitor (BCM) showed a record rise
in its confidence among business professionals, with the IT sector
the most confident.
The ICAEW's confidence index had gone into positive territory
for the first time since Q3 2007,
rising from -28.2 to +4.8. Thirteen out of fourteen financial
performance indicators detailed by the BCM are now expected to
rise.
The Institute forecast a rise in GDP of 0.5% in the current
calendar quarter. This will end five consecutive quarters of
negative growth.
ICAEW chief
executive Michael Izza said the figures clearly suggested the
recession is ending.
"While there is no doubt that the UK economy is on its way to
recovery, we shouldn't underestimate the challenges ahead for
businesses," he said.
Michael Izza pointed out that while many businesses had taken
the right steps to protect themselves, and policies such as
quantitative easing, interest rate and VAT cuts had helped, the
recovery was still fragile and could easily be derailed.
"Although positive growth in the autumn seems more likely, there
are concerns about the strength of the recovery," Izza said.
"Salaries are expected to remain squeezed and with no planned
recruitment there is still an air of nervousness among UK
businesses."
When asked, 41% of senior business professionals were more
confident about economic prospects facing their business in the
next year. However only 6% were much more confident, indicating
that caution remains about the strength and timing of the
recovery.
A version of this story originally appeared onMicroScope.co.uk