Finance professionals 'pessimistic' about economic future

News Article - 23 May 2012
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Business confidence for the third quarter of 2007 is at its lowest in two years, according to new figures.

The Business Confidence Monitor (BCM) from the Institute of Chartered Accountants in England and Wales (ICAEW) revealed that finance professionals have low expectations of the forthcoming business year, following a second consecutive drop in optimism levels.

Reported in the Independent, the economy is growing at an annual rate of three per cent, yet according to the ICAEW confidence has "collapsed".

"Although it is too early to judge the full impact of financial turbulence and tighter credit conditions on the real economy, a slowdown in the UK is on the horizon," said chief executive of the ICAEW Michael Izza.

Financial crises such as the events of Northern Rock over the summer had "a significant impact" on the way people view the economy, he added, claiming that industry professionals reducing their investments and increases in inflation have only exacerbated the problem.

The ICAEW recently claimed that regulation is holding back business growth as the cost of implementing new legislation stands at £10.2 billion a year.

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