Firms set to put brake on capital spending
Businesses are planning to slash capital investment spending in response to the UK's weak economic outlook, according to a new survey.
The UK Business Confidence Monitor index, produced by the Institute of Chartered Accountants in England and Wales and the accountancy firm Grant Thornton, shows that the number of firms who expect to boost their capacity over the next year has fallen nationwide.
There were considerable drops in spending expectations from firms in the East Midlands, the North West and also the South West. The survey also found that around 20 per cent of firms have stock levels above normal, pointing to a lack of customer demand.
The overall confidence index steadied, rising to -9.3, up from -9.7 in the three months of 2011.
But confidence is still below the +8.1 seen as recently as the third quarter of last year.
Michael Izza, chief executive of ICAEW, said: "This survey shows that businesses are responding to concerns about the economic outlook by cutting back on investment in equipment and people.
At the moment, it is hard to see where this growth will come from and the Chancellor needs to use the forthcoming budget to give businesses reasons to be more confident about the future – and unlock potential investments."
- 1 What happens to your body when you give up sugar?
- 2 Have sex with your iPad thanks to the new sex toy no-one asked for
- 3 The 'sex selfie stick' lets you FaceTime the inside of a vagina
- 4 Why you're almost certainly more like your father than your mother
Mark Zuckerberg: Facebook CEO's one simple test for who to hire
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Saudi Arabia executions now at 'unprecedented rate' after kingdom kills four more in two days
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...