Simply Business news: new year begins with increased confidence

By:  06/01/2010
Keywords: Business Insurance

Confidence is at its highest for two years amongst some of the UK's most senior finance chiefs, according to a new survey.

Chief 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.

In other 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 July 2007.

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.

Keywords: Business Insurance