UK Recovery Could Slow in Q3 as Business Leaders Reveal Falling Confidence Levels
Reports in todayΓÇÖs business pages suggest that the UKΓÇÖs economic recovery will slow during the second half of 2010, after research suggested that business confidence has fallen as the talk of cuts and tax rises begin to take their toll upon business leaders.
In research carried out by accountancy body ICAEW and accountancy firm Grant Thornton, nearly a fifth of companies have revealed concerns and falling confidence levels as they enter Q3, with renewed caution brought about by the feared impact of the emergency budget and OctoberΓÇÖs comprehensive spending review.
ΓÇ£UK businesses that came through the recession are now facing the challenge of surviving the recovery. They still don’t know what the future holds and are uncertain about how the mood of fiscal austerity will impact the economic recovery.ΓÇ¥ explained Michael Izza, chief executive of the ICAEW before pointing out that:
ΓÇ£Government needs to deliver on its commitment to ensure Britain is open for business while taking the tough decisions required to tackle the deficit.ΓÇ¥
The issue of cost cutting and caution have been prevalent since the turn of the year, with many firms merging work and office space and freezing staff pay or even offering part-time work in order hold out through the recession. But if, as this latest bout of research suggests, the remainder of 2010 will see slower progress along the road of recovery, how could this impact upon the serviced office industry?
As an industry often reliant on the SME sector ΓÇô up to 70% in the case of serviced office provider Avanta based on a recent blog posting by founder David Alberto ΓÇô could an increased level of caution stifle the signs of recovery in this vital sanctuary for SMEs?
Although those businesses leaders surveyed delivered a message that commentators have interpreted as a sign that the economic recovery could now slow, companies also reported their most sustained improvement in their finances since 2008 and the possibility increased staff numbers before the close of 2010.