A majority of finance directors believe the worst of the UK economic slowdown is over.
Of the 349 respondents in this week’s Accountancy Age/Reed Accountancy Personnel Big Question 52% believe the UK economy is recovering having reached the lowest point in the current economic downturn.
The news will be welcome to Gordon Brown as he prepares to present his annual Budget. One FD said: ‘Inflation is at its lowest and I have heard the manufacturing sector is picking up.’
Another said he thought the UK economy was probably recovering but it was all down to confidence rather than reality.
He said: ‘Any recovery will be slower than it would have been two years ago because business is starting to lose confidence in the government in particularly in their ability to either deliver on election promise or keep tax levels.’
Cooper Security FD Alan Gascoigne said: ‘ Since the turn of the year, there has been a slow upturn. Positive signs ahead hopefully.’
Only 26% remained less optimistic. One FD said: ‘Just because house prices have gone up doesn’t mean we are in recovery.’
Another who also wished to remain anonymous said: ‘I think we have not hit the bottom yet. The telecoms market in particular has over spent hugely and is not getting the rewards now.’
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