Most firms optimistic despite 'economic concerns'

17/03/2008

A majority of the companies quizzed by Lloyds TSB recently said they expect their own business to pick-up during the next 12 months, despite the apparent fears over an economic slowdown.

Only one in ten firms expect to see their own activity decline this year, but 51 per cent admitted that they are more pessimistic about the state of the wider economy now than was the case three months ago.

Many businesses turn to debtor finance and invoice discounting services when cashflow is tight and only 28 per cent of companies have become more optimistic about the British economy during the most recent financial quarter.

Trevor Williams, chief economist for Lloyds TSB Corporate Markets, commented: "Although this year is likely to be a challenging one for many businesses, we expect confidence to improve in the second half and economic growth to accelerate in 2009."

Figures released recently by Abbey suggested that only one in six UK consumers consider starting their own business to be a viable option.