'Optimism falters' for UK chief execs

News Article - 24 January 2008
Category: Business

Overall optimism in business growth is dropping, according to a poll of UK chief executives.

The research, conducted by PricewaterhouseCoopers, revealed that the percentage of business leaders expressing optimism about managing a stronger business this year dropped by seven per cent to 43 per cent.

However, on a global scale, this figure rose to 50 per cent, suggesting the pessimistic trend is UK-based.

Concerns over business performance included rising costs, increased regulation and lack of skills, the study revealed.

However merger and acquisition (M&A) plans boosted morale, alongside proposals to globally expand.

According to the chairman of the firm's UK arm Kieran Poynter, chief executives "share the global caution about growth prospects for the year ahead".

"But with aggressive M&A and expansion plans, the outlook is certainly not entirely pessimistic."

Research by Bank of Scotland Business Banking backed the findings, with over 80 per cent of small to medium-sized business owners predicting that running costs will rise this year.

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