THE slow economic recovery has not dampened the spirits of UK business owners, a survey by business adviser RSM Tenon has found.
Many of the survey respondents said the situation will not take long to improve, with 59 per cent of those polled indicating that they felt confident about potential opportunities for their businesses over the next three months. This increased confidence is translating into business investment. Thirty-nine per cent of owners are hoping to expand their business within the next 12 months, and only one in 10 expects to have to cut back on their operations.
There were also increases in the number of businesses which planned to raise staff numbers, increase salaries, and spend more on marketing and communications.
Increased spending is being justified by forecasts of higher consumer demand for goods and services, with 43 per cent of owners predicting this to increase in the next three months. However, only 21 per cent currently feels confident enough to raise prices over the same period.
Andy Raynor, chief executive of RSM Tenon, said that increases in spending could only be a good sign for the UK economy.
“Active investment into businesses is a key indicator of confidence and our barometer shows planned spending has been steadily growing over the last nine months,” he said.