According to the UK Business Confidence Monitor index from ICAEW and mid-tier firm Grant Thornton, business confidence has dropped from Quarter 2’s record figure of +37.3 down to 32.3 for the current quarter.

 The Business Confidence Monitor takes into consideration the opinions of a thousand ICAEW UK members who are employed in senior business roles. The survey participants expect revenue and profit growth to slow down along with general business investment, although the next quarter is predicted to see economic growth at 0.9%.
However, ICAEW director of business, Stephen Ibbotson, commented that businesses are taking a more subdued approach towards future growth. “This slight fall in confidence, the first for two years, demonstrates that businesses are becoming more realistic about the future.”
Despite confidence being dampened, employment levels are predicted to increase by 2.5% in the private sector. In addition, growth drivers remain in domestic markets rather than the export markets which could have a negative effect in the future.
Ibbotson continued, “The imbalances in our economic recovery that were masked by rising confidence continue to persist – our exports remain weak and investment isn’t maintaining momentum. We look to the Bank of England and the government to work harder to ensure that the recovery is placed on a broader footing before we see this still relatively high optimism erode away.”
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