PracticeAccounting FirmsBusiness confidence hits new low

Business confidence hits new low

Businesses across the UK are continuing to reduce costs and scale back their plans as confidence falls to its lowest level, according to a new survey by the ICAEW

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.

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