According to three major business surveys, UK companies have now reached highs in business confidence not seen for 20 years, with the majority of firms surveyed believing they will be able to grow sales, profits and exports in the next 12 months.
According to a survey conducted by Lloyds Bank of more than 1,500 British firms, confidence has now reached its highest level since January 1994, with the vast majority of respondents forecasting a strong increase in orders between now and June of this year. In turn, this has led to a 19 year high in investment intentions, meaning that many surveyed firms plan to expand their businesses during 2014.
Deloitte, meanwhile, discovered that finance directors of some of the country’s biggest firms have turned their attention from creating economic backup plans in favour of attracting investment for their companies and taking on additional members of staff.
In addition, it appears that finance directors are once more beginning to place higher levels of trust in the banking system, with a record 80 per cent of participants claiming they would definitely consider bank credit when seeking sources of funding for expansion or investment in growth.
Finally, a survey jointly conducted by manufacturers’ organisation EEF and small business bank Aldermore indicates that confidence amongst small manufacturing firms has increased vastly in the past two years alone. This is largely due to the export opportunities afforded by emerging markets in the Middle East and Asia, especially in areas such as luxury vehicle manufacturing.
The survey from Deloitte in particular will be welcomed by both the Treasury and the Bank of England, as critics have previously claimed that the efforts of both to reduce economic difficulties have centred around consumer spending.
Deloitte chief economist Ian Stewart says; “From a Treasury or Bank of England point of view, this is the kind of survey they dream of.
“This bodes well for the broad based recovery policymakers hope to see in 2014.”
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