Business confidence at 12-year high
Published On 15 January 2007
Rising sales figures have seen UK business confidence hit a 12-year high, according to new figures. The new Lloyds TSB Corporate Markets report surveyed over 2,500 firms and found that in the last year the net balance of firms reporting higher rather than lower sales almost tripled from 13 per cent at the start of the year to 37 per cent at the end.
This reflection in business confidence is the highest since June 1995 and was accompanied by 55 per cent of UK firms reporting increased sales in the second half of 2006.
And according to the survey's business confidence index, which measures companies' expectations for sales, orders and profitability, the next six months will be plus 37 – almost double the plus 19 figure of December 2005.
Diana Brightmore-Armour, Lloyds TSB spokesperson, said: "UK firms weathered the difficult trading environment of the last two years by cutting production costs and increasing their efficiency. This has put them in a great position to exploit the improved market conditions.
"By raising their prices companies have taken full advantage of stronger UK and global growth last year and we think 2007 will be another good one for UK company profits. Undoubtedly the service sector will continue to expand quickest of all because strong global demand for UK business services and robust domestic conditions is a sure-fire recipe for success."
