Quarter two 2012
Business confidence improves but economic recovery still fragile.
Business confidence has improved in the last three months, suggesting the UK will return to growth in Q2 2012. Despite a strong rebound in the Confidence Index, BCM supports the view that the UK’s economy will continue to ‘zig-zag’ over the next 12 months, with economic recovery still very fragile.
Key findings from BCM Q2 2012 report include:
- The BCM Confidence Index stands at +12.0, up from -9.3 in Q1 2012 and the highest level since the second quarter of 2011
- This strong improvement in confidence suggests the current recession is likely to be short-lived, with quarter-on-quarter growth of 0.6% forecast for the second quarter of 2012
- Businesses expect capital investment to grow by just 1.4% over the next 12 months. Improvement in confidence does not mean they plan to start spending cash surpluses accumulated in recent years
- Companies report that exports are 4.1% higher than a year ago, up from 3.3% last quarter and the strongest growth since Q3 2011
Further information
For further information on special reports please contact Yvonne Burr, Strategic Research
For further information on BCM please contact Ruth Betts, Strategic Research.
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