Business confidence on the rise
BDO Stoy Hayward claims that lower interest rates and a weaker pound are starting to improve business confidence.
The BDO optimism index, which is an indicator of GDP growth two quarters ahead, is at its highest level since the first half of 2002.
The BDO optimism index rose from 98 to 98.4 in July. It is the first sign of an upturn in business confidence since the end of the Iraq war.
However, BDO said its output index-which relates to GDP movements a quarter ahead, failed to make any progress last month. Order flow remained patchy as businesses focussed on improving profit margins with the index falling from 99 to 98 in July.