Business confidence dip hints at slower expansion later this year
BUSINESS confidence has dipped slightly for the first time in two years, according to a survey released today, indicating that acceleration of growth may finally begin to moderate in the second half of 2014.
Grant Thornton and the Institute of Chartered Accountants in England and Wales (ICAEW) report that a net balance of 32.3 per cent of firms surveyed were optimistic.
Although any figure above zero indicates that more respondents are positive than negative about the recovery, the proportion has dipped by five percentage points since the previous survey.
“The imbalances in our economic recovery that were masked by rising confidence continue to persist – our exports remain weak, and investment isn’t maintaining momentum,” said the ICAEW’s Stephen Ibbotson.
The Bank of England also expects a slight slowdown in activity during the second half of the year.