Business confidence dips below recession level
Small firms in the UK are experiencing the lowest levels of confidence since the depth of the recession, a new report has stated.
BDO's Optimism Index has this week revealed that confidence fell from 93.1 in August to 91.6 in September.
Scores below 95.0 are usually indicative of recessionary conditions.
The report's analysts believe that it could fall even further, as businesses remain uncertain about the overall impact of the Comprehensive Spending Review.
However, any further falls in confidence could be disastrous for businesses in the UK.
A spokesperson for the Forum of Private Business said: "If this spending review is going to be about public sector efficiency, what we want, in particular as an organisation, is the tax system and red tape compliance to be streamlined in order to not only reduce the deficit, but also remove the cost burdens on business growth."
According to the organisation, clarification on public sector business support and Local Enterprise Partnerships could also help businesses sustain confidence levels.
Posted by Christopher Evans
Published on: October 15, 2010
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