UK economic confidence down
Published On 7 January 2008
Companies in the UK are feeling more pessimistic about the economy than they have since December 2002, according to a new study.Research carried out by Lloyds TSB found that in December 2007, 51 per cent of businesses reported a pessimistic outlook, up from 28 per cent the month before.
What's more, the number of firms claiming to feel optimistic about the future of the nation's economy fell from 44 per cent in November last year to 34 per cent in December.
"While there has been a steady trend towards economic pessimism during the last four months, firms became far more cynical in December," said chief economist for Lloyds TSB Trevor Williams.
"Although slower house price growth and tight credit markets have undoubtedly weakened economic growth, more cuts in official interest rates in the first quarter of 2008 should restore some of the lost optimism among UK companies."
The report did find that UK businesses were more optimistic about their own economic activity, with 50 per cent feeling positive in this area in December compared to 47 per cent the month before.
