Business confidence is at its lowest point since the recession as the euro debt crisis and slowing global growth take their toll on companies, according to two surveys published today.
Optimism among chief financial officers of leading UK firms fell for the third quarter in a row between July and September, says the latest Deloitte CFO survey, with the outlook at its lowest level since early 2009, when the UK was in recession. Nearly half of those executives questioned - 43% - believe that the UK will fall back into recession, up from 33% last quarter.
In addition, confidence in the manufacturing and service sectors has declined to a two-year low, according to the latest Business Trends report by the accountants BDO. For the first time since July 2009, both the manufacturing and service sectors are showing optimism levels below the 95 mark that indicates growth. Confidence in the manufacturing sector is particularly low. Its optimism score has fallen from 116.4 to 88.2 in seven months.