City confidence in GDP is down

Tim Wallace
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INVESTOR confidence in the state of the economy fell sharply into the second quarter, a major survey of fund managers shows today, as the hopes of recovery that emerged at the start of the year were stamped out by the resurgent Eurozone crisis.

The study from Capital Spreads also shows that only a minority believe the Olympics will bring in more money than it will cost to run.

Only 49 per cent of fund managers expect the economy to improve over the next year – sharply down from the 68 per cent seen in the first quarter.