For the first time in two years the Business Confidence Monitor from the Institute of Chartered Accountants in England and Wales (ICAEW) has turned positive.
It may be seen as evidence that the UK economy is improving. The figure recorded, +4.8, was up from -28.2 and was the best since Q3 2007. The ICAEW used the figure to predict that UK GDP will rise by 0.5 per cent this quarter.
The change is the largest quarterly improvement seen since BCM began, and the optimism is backed up by expected rises over the next 12 months in 13 out of the 14 financial measures detailed within the BCM.
When questioned, 41 per cent of senior business professionals were more confident about economic prospects for their business in the next 12 months.
The optimism is not shared by Brendan Barber, general secretary of the Trades Union Congress. He said that public spending cuts would bring about a "double-quick, double-dip" recession which could result in four million unemployed. Speaking on Sunday 13 September, the eve of TUC conference, he said that calls to cut public sector deficit were "astonishing". "When the economy shrinks, goverments need to spend more on benefits," he said.
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