Business confidence hits new low

The survey, which questioned 1,001 chartered accountants in various industries, found that eight out of 14 indicators of financial performance are forecast to decline ­ the most severe fall in confidence since 2003.

The ICAEW has published eight tips to help businesses cope with the economic downturn, including managing risk and uncertainty, recognising the value of employees and reviewing structure and cost base.

Michael Izza, chief executive of the ICAEW, said: ‘Businesses don’t believe that this will be a short recession and expect it will take some time to rebuild confidence. Experience suggests that companies that act decisively and are quick to respond to changing circumstances will emerge stronger at the end of the recession.’

More than a third (35%) of companies surveyed said access to capital was a greater challenge to their business performance than a year ago. With getting credit still problematic, late payment is becoming more commonplace.