Business confidence 'needed'

News Article - 12 December 2008
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If business confidence does not return in the UK then the economy could be headed for a "nasty recession", one sector commentator has claimed, which could inspire companies to look to gaining a competitive edge through business growth.

Victor Smart, a spokesperson for the Chartered Institute of Management Accountants, said that the current financial situation was "incredibly volatile".

"These are unprecedented times and it all hinges on confidence," he added.

Research from Tenon Recovery revealed calls for assistance from a record number of businesses in the retail, restaurant, motor industry, property and leisure industries in November and December, up almost 200 per cent on the same period last year.

Furthermore, the study also found that the extent to which profit margins are being cut to entice consumers to spend means that many businesses may be unable to weather the forecasted tough first quarter period of the new year.

And companies may also be struggling to cope because today's executives have little experience of operating in a downturn following almost 15 years of growth.

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