Rise in confidence brings boost for jobs

Business confidence has risen among UK companies with most planning to take on more staff as optimism about the economy grows, says a survey published this morning.

The venture capital group 3i said its latest UK barometer index had recorded its best results for 18 months in both the manufacturing and service sectors.

After seven successive falls, the index has risen for the past two quarters. A majority of companies expect to be employing more workers by the end of the year.

The wider European barometer index also recorded a sharp improvement with higher levels of business optimism. Confidence has risen in France, Spain and Italy as well as the UK. Although it dipped slightly in Germany, it remains higher than it was six months ago.

Brian Larcombe, the chief executive of 3i, said: "In the UK, the upward trend is noticeable and although Continental Europe is still generally weaker, the barometer for Spain is now positive and Italy nearly so."

But the Bank for International Settlements in Basle struck a more gloomy note, saying business confidence so far this year has been dented by the decline in stock markets, worries over corporate accounting practices and concern about exposure to debt.