This is according to the ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) for Q3 2010.
Key findings from the report include:
- Business confidence has weakened significantly as businesses acknowledge the path to recovery contains further challenges, with a fast return to strong growth by no means guaranteed.
- Turnover and profit growth have returned to positive territory for the first time since the start of 2009, however, expectations for growth over the next year softened from last quarter.
- Exports continue to expand, with solid growth forecast to continue as weak sterling helps the UK economy to rebalance. Weak sterling is also supporting confidence among UK manufacturers.
- Only modest price rises are planned by firms. Combined with spare capacity this suggests inflation will cool off.
- Access to capital continues to ease for all, though is still more of a challenge to private companies than listed companies.
