Confidence in UK business 'remains robust'

News Article - 30 November 2007
Category: Business

The UK economy is resisting the impact of the credit crisis, according to new research.

According to the BDO Business Trends report by accountants and business advisors BDO Stoy Hayward, confidence levels for the next two quarters decreased by 0.4 points to 100.5 between October and November.

Despite this being the lowest recorded figure in two years, the report stated that it remains above the 100 mark, meaning the economy is still predicted to grow at a faster rate than the long-term prediction of 2.5 per cent to 2.75 per cent.

Peter Hemington, partner at BDO Stoy Hayward, commented: "Despite fears about the impact of the credit crunch, the rising cost of oil and a weakening of consumer demand, UK business remains defiantly positive about the future."

However confidence levels are decreasing, he warned, claiming that this may lead to an economic slowdown during 2008.

Credit insurer Atradius has announced that due to financial volatility, some medium-sized businesses have been pushing their credit terms to the limit and becoming bankrupt, reports the Telegraph.

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