UK confidence wobbles strike again

A third of all UK finance directors think the economy remains badly bogged down in recession. These are new findings from a Deloitte report which surveyed a range of FTSE 100 and 250 companies. Warnings of on-going depression aren't new. What is new is an emerging UK twin-track economy of losers and winners.


Boom town for some

Such an economy is based on those UK companies with heavy exposure to the booming Asian markets, and those more concerned with home demand (or its lack). But even those supported by Asian markets are not all finding it easy.

The Business, Innovation and Skills (BIS) Committee claims today that there remains concerns about the "Government's ability to deliver on its strategy to support UK exports – a key part of the Government's strategy to support the UK's recovery from recession".

Part of those concerns relate to cost-cutting, particularly with business support. It's also down to the fact that exporters on their own can't do the job of re-balancing the economy.

Risk

Other costs gnaw away, particularly for small companies: energy costs, not just light and heating but fuel, have ballooned. VAT and other taxes have risen. The cost of living - food prices - has shot up.

Still if only a third of all financial directors think we're in trouble, then two thirds have a different view. And the willingness to take risk is still there, claims Deloitte, in overseas acquisitions, for example.

But how will that help UK workers back home?

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