Business
confidence slumps to new low
As fears of a recession intensify, latest statistics reveal that business confidence is plunging towards a record low.
The Lloyds TSB Business Barometer shows 53% of firms are pessimistic about the future of the economy, while 20% are optimistic.
Despite this, just 18% of enterprises expect business activity to decrease over the next 12 months.
Distribution and logistics companies were the most pessimistic about future prospects, with just 12% forecasting an improvement in activity.
Commenting on the
results, Trevor Williams, chief economist at Lloyds TSB Corporate Markets,
said: ‘The cocktail of a weakening in economic conditions and tighter credit
means that firms are very likely to trim investment spending even further than
they already have.
‘And it's unlikely we'll see a quick turnaround in this trend any time soon,
given the worries businesses have about a potential recession.’
He added: ‘However, the recent fall in oil prices and declining input costs in
other areas, do give reason for hope that pressure on operating margins may
soon start to ease - so there are some signs of respite appearing.’
The findings come
as the CBI adds its voice to the growing number of organisations
that are predicting the