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Businesses now have 'more balanced' view of growth

Businesses are taking a balanced view of the year ahead despite a recent confidence dent, according to new research. The Lloyds TSB Business in Britain survey found that the balanceof firms expecting improved, rather than worse conditions over the next six months was 18%.

This compares to a balance of 41% of firms that expected improved conditions in the same poll taken six months ago. However, Lloyds TSB said the recent results are a long way off indicating a recession.

John Maltby, managing director, Lloyds TSB Commercial, said: “There’s no doubt 2008 will prove more of a challenge for many firms, but it’s a ride most will be able to endure. It’s clear that investment spending will be capped, as businesses tighten their financial belts, but British firms are well versed in the art of cash management and financial planning and these are skills that should help them weather the storm throughout 2008 and beyond.”

The survey also revealed weaker profit forecasts. A balance of 4% of companies expect higher profits in the first half of 2008 - down from 30% in July 2007. Lower profit expectations have also had a noticeable effect on investment plans, according to the report.

The balance of firms expecting to increase, rather than decrease, spending dropped from 11% to -1%, while the number of businesses expecting to recruit more staff dropped from 19% to 8%.Â

This was posted in Bdaily's Members' News section by Ruth Mitchell .