It appears that some of the doom-and-gloom amongst North East businesses is beginning to fade. According to the latest ICAEW (Institute of Chartered Accountants for England & Wales) Business Confidence Monitor, North East companies are beginning to take a more positive view of the future, with current levels of confidence being at their highest level since the collapse of Lehman Brothers in September 2008.
Although the overall levels are nowhere near where they were a little over a year ago (the average business sin the North East is still pessimistic about the next 12 months), the results do at least suggest that many companies in the region believe that the worst of the recession is over. The trend shows that many businesses are taking the correct steps required to revaluate their operations and prepare themselves for growth despite the difficult circumstances.
It is perhaps premature to think that the recession is over and that the economy is now recovering, but an increasingly confident private sector will help to ensure that recovery is eventually realised.
One thing the report does not take into account is the UK’s latest GDP figures, which showed a 2.4% drop in Q1 2009, this is the largest drop in GDP since 1958. These figures were published after the ICAEW’s report was completed and therefore may not be reflected in the results.
To view the ICAEW report in full, please visit the ICAEW website.