ICAEW Business Confidence Monitor (BCM)

Key points from the Q2 2009 report

• As the contraction shows signs of slowing, confidence stands at its highest level since the collapse of Lehman Brothers in September 2008.
• A steep drop in inventories began in 2008 - BCM data corroborates this with a sharp rise in the number of firms running stock levels below average.
• There are signs that the freeze in the financial markets is starting to thaw as confidence in the Banking, Finance & Insurance sector rises to the highest level since the credit crunch.
• Firms have already undertaken significant cost-cutting, targeting capital investment, headcount and pay settlements; more is likely, although at a slower pace.
• Unprecedented levels of peacetime public borrowing point towards unpleasant fiscal consolidation in the coming years.

Special reports

View extra research, ad-hoc analysis and special extracts from the BCM reports, concentrating on topical issues:

• Bank Finance Report, Februrary 2009
• Professional Services Report, August 2008

Regional analysis

• Q2 2009 regional reports
• Visit the ICAEW's regional homepages

Media and technical information

• About the BCM

More

• View past reports

Further information

The BCM reflects the views of senior finance professionals working at the heart of business, across all UK regions, commercial sectors and sizes of businesses.

For further information contact Ruth Betts, Strategic Research at:

• ruth.betts@icaew.com