Firms 'pessimistic' about UK economy

News Article - 23 May 2012
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Businesses are currently pessimistic about the British economic, but many are convinced that they will weather the storm.

Firms worried about the economic downturn caused by the recent global credit crunch can invest in accounting software to improve the management of their finances.

A study by the Chartered Institute of Management Accountants (CIMA) found that 62 per cent of businesses in the UK forecast that they will experience sales growth over the next four months and four out of five firms do not expect any job losses in 2008.

However, almost half (48 per cent) of the firms polled stated that they believe that a recession in Britain is likely and a further 37 per cent think that it is a possibility.

According to the poll of 200 finance directors, just 15 per cent feel that a recession as a result of the credit crunch is unlikely to occur, though half of the businesses surveyed had grown over the past quarter.

Ray Perry, director of brand for CIMA, commented: "What came out in discussion was that sensible companies would look at their costs and make sensible cuts and adjust what they are doing to the climate as a whole."

Business are planning to introduce cost cutting measures and are planning to spend less on temporary and agency staff, graduate recruitment and outsourcing services.

Data from the Office for National Statistics (ONS) published last week revealed that business investment in the first three months of 2008 dropped by 1.4 per cent compared with the previous quarter to £36.22 billion.

Good accounting software can substantially improve the way in which companies manage their financial obligations, highlighting areas where costs can be reduced and enhancing efficiencies.

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