Confidence is at its highest for two years amongst some of the UK's most senior finance chiefs, according to a new survey.
Financial Officers (CFOs) in 128 of the biggest companies in the
country broadly believe that the apparent recovery in the UK financial
system is sustainable. An increasing number of CFOs are also
increasingly willing to take risks - indeed, more are happy to do so
than at any time since the beginning of 2008.
But almost half of
those surveyed are still concerned that any economic recovery may
falter. The potential for weakness and fragility in the recovery is an
ongoing concern amongst analysts and businesses.
positive news, output in the UK manufacturing sector grew in December
at the fastest rate in two years, according to figures from the
Chartered Institute of Purchasing and Supply. New orders from UK-based
manufacturers are also higher than they have been at any point since
There is general hope that 2010 will be a better
economic year than the one that preceded it. But concerns are rife
about the sustainability of any recovery. Retailers are particuarly
worried about the possible effects of the VAT increase, which came into
force on January 1st. The impact of this on shoppers' expenditure is
yet to be seen.
The UK is the only major world economy yet to
exit technical recession. It is thought that it may do so in the first
two quarters of this year.