Even though the prospects of Europe economy are sluggish, the business confidence of Britain rose to highest levels since January 2008. The increase in confidence was due to hopes of rising prospects in America and other countries along with new moods of optimism in the market of the UK.
Companies are expected to increase spending on machinery and also recruit more staff in the coming months as per the bi-annual survey of companies by Lloyd’s TSB. According to that report, the East Midlands will have the opportunity of becoming the most exuberant region and also small companies enjoy the biggest jump in terms of growth.
As a sign of the coalition policies that are aimed towards rebalancing the UK economy growth are fruitful, the spirits of several companies in the manufacturing sector are at highest levels. As per a report, over the past six months, the confidence index of UK has scaled 11 points to reach 30pc.
More than fifty percent of the companies are expecting their sales to grow or increase in the second half of the year 2013. David Oldfield, Lloyds Banking Group, said that several companies regained confidence about the future prospects of trading after several years of concern and hesitation.
However, many companies are still having their worries regarding strength of the recovery. They are also expressing concern and worry for passing on the costs in terms of higher prices. Hence, this factor is eroding the profit margins of nearly a fifth of all organisations.