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UK businesses 'optimistic' about next 12 months
05/03/2007
Nearly three-quarters of UK companies think that their business activity will increase over the next year, new research reveals.
This is in comparison to the three per cent of firms which are anticipating a decrease in activity, according to Lloyds TSB Corporate Markets' Business Barometer.
The bank's research also indicates that 54 per cent of businesses are confident about the UK's economic situation as a whole.
Confidence in the UK market, therefore, is above the survey's average figure, but is down on last month's level.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "UK businesses have good reason to be optimistic.
"Over the coming 12 months we can expect to see the UK economy gaining strength, with the possibility that GDP [gross domestic product] could rise by around three per cent after posting an increase of 2.7 per cent in 2006."
He added that the aforementioned growth is being driven by strong demand in Europe, while there is also "a boom in business investment".
This is in comparison to the three per cent of firms which are anticipating a decrease in activity, according to Lloyds TSB Corporate Markets' Business Barometer.
The bank's research also indicates that 54 per cent of businesses are confident about the UK's economic situation as a whole.
Confidence in the UK market, therefore, is above the survey's average figure, but is down on last month's level.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "UK businesses have good reason to be optimistic.
"Over the coming 12 months we can expect to see the UK economy gaining strength, with the possibility that GDP [gross domestic product] could rise by around three per cent after posting an increase of 2.7 per cent in 2006."
He added that the aforementioned growth is being driven by strong demand in Europe, while there is also "a boom in business investment".