Business confidence exhausted in UK

Press TV
10/7/12
Three separate surveys have shown Britain’s weakening economic state faces a fresh threat to growth due to a plunge in business confidence.

The double-dip recession gripping the British economy could last until the end of the year, according to finance directors, The Telegraph reported on Sunday 8 July.

Deloitte’s Chief Financial Officer (CFO) survey saw that business confidence had sunk to its lowest level in 2012. Moreover, activity levels from Britain’s Lloyds TSB bank were reported to have the weakest reading in seven months relating to a slowdown in growth.

Lloyds TSB’s June regional purchasing managers’ index revealed that the regions confirmed their slowest overall activity since November 2011.

The findings of the survey are most probably to deliver a setback to hopes that businesses would contribute to Britain’s economic recovery by investing the £750 billion of cash they have hoarded to help them get through a crisis.

The eurozone has also been blamed by finance directors for the fallback in confidence. They stated that the possibility of one or more countries to exit the euro by the end of the year was 36 percent, making it the highest level so far to be recorded.

Moreover, the British Chancellor George Osborne raised deep concerns last month that the economic recovery of the UK was being killed off by the turmoil in the eurozone, as its fate continues to remain volatile.