Business confidence falling

Graham_Devon

Business confidence among UK firms is falling, two surveys have suggested.

The Business Trends optimism index from accountants BDO fell to 95.1 in July from 95.6 in June.

The Chartered Institute of Personnel and Development (CIPD) said that more employers planned to cut jobs than increase staffing levels in the third quarter.

Both BDO and the CIPD said that the drop in confidence was thanks largely to a fragile manufacturing sector.

"Increasing uncertainty about growth prospects in both the UK and global economies is now affecting hiring intentions, particularly in those industries such as manufacturing that stand to lose most in the event of a global slowdown," said Gerwyn Davies, public policy adviser at the CIPD.

Mr Davies added in an interview with the BBC that the situation for companies was being made worse by an inability to get the money they need.

"The biggest factor that will drive jobs growth is access to finance," he said.

"The demand is there, but the banks simply aren't lending."

I don't buy the suggestion that banks are not lending. Not every business wants to borrow, and just feel this is more to do with the general economy than the banks.

http://www.bbc.co.uk/news/business-14523310

Loughton_Monkey

Given the continuing uncertainty reverberating around Euroland, then topped by the 'circus' provided by the Republican/Democratic bunfight over budget caps and its subsequent downgrading, I wonder if there is a single person in the world who would predict increasing British Business Confidence?

I would have thought a 16% 'crash' in business values tells us all we need to know about business confidence.

So what other little gems are in the pipeline? High Street Retailers fear rises in property insurance costs? Bears continue to shun proprietary toilet facilities?

doire_2

The Chartered Institute of Personnel and Development (CIPD) said that more employers planned to cut jobs than increase staffing levels in the third quarter.

Not what the economy needs is it