However, according to Lloyd’s TSB Financial Markets’ August Business Barometer, firms are resigned to a bleak outlook for growth in the wider economy.
The results revealed that 43 per cent of firms expected an upturn in their own business with only 5 per cent adamant that a decline would occur.
The largest confidence boost was in London with 41 per cent of the capital’s firms confident of their own prospects, up 16 per cent from July’s 25 per cent.
However these figures are still a marked downshift from an average balance of +18 per cent over the life of the survey.
Trevor Williams, chief economist at Lloyds TSB financial markets, said: “The UK economy has definitely shifted into a lower gear in the first half of 2005 but business levels now appear to be stabilising.”
Williams went on to add: “For the economy, high oil prices bring the threat of weaker growth and higher inflation which could limit the scope for future rate cuts.”
Mike Fitzgerald, sales director at Brentchase Financial Services, was certain buyer confidence would return and predicted an upsurge in business vol- umes leading up to Christmas.
He said: “This morning seven appointments have already been made and it’s only 10.13am. I’ve had a ring around of about 15 firms and they are all starting to say that business this week has been picking up.
“A lot of people are coming to the end of two-year deals and I believe the months leading up to Christmas will be busy – not so much in new-build but in remortgages. People are coming back from their holidays and are beginning to sort out their business.”
