A new report has revealed that business optimism in the UK is, in fact, now higher than has been the case at any point over the last two decades.
Indeed, the study – produced by international accountants BDO – found that business optimism is at its highest point in 22 years, giving further credence to suggestions that the broader economy is on the rise.
And according to BDO, further growth will be seen in the next six months, which is likely to lead to another upturn in the economy.
BDO noted that an improving mood is sure to lead to a further fall in unemployment with businesses’ hiring expectations at their best since August 2008.
Reflecting on the current outlook, BDO partner Peter Hemington said, “An interesting feature of the recovery so far has been the way in which UK productivity remains at levels last seen in late 2005. Looking at this optimistically, this means that the UK can continue to grow for some time by increasing productivity before wage-related inflationary pressures begin to kick in.”
This sentiment has been echoed by recent research from ICAEW, the accountancy industry body, which said that it recorded its highest reading yet.
It did, however, acknowledge that there are concerns about the structure of the UK economy, especially in relation to export growth.
This comes shortly after a report by the British Bankers’ Association observed that banks are more willing to lend than small businesses believe to be the case.
According to research conducted by the body, some 37 per cent of small businesses planning to apply for financial support think that they will not get approval from the bank.
In reality, however, more than two-thirds have actually had their loan application approved. This means that there is a sizeable disparity between the perception and the reality.