UK to avoid triple-dip recession, suggests new survey
A recent survey has claimed that despite concerns that the British economy is slipping into a triple-dip recession; the UK will continue to grow.
Contractors will be pleased to hear that the latest Business Confidence Index from ICAEW/Grant Thornton, predicts that the economy will expand by 0.4% in the first quarter of 2013, despite the 0.3% contraction in the last quarter of 2012.
According to the survey, business confidence has reached its highest level since Q2 2011, with overseas demand for goods and services steadily increasing.
Grant Thornton UK LLP CEO, Scott Barnes explained, ‘Export growth rose slightly this quarter as the global economy picked up. This could be a sign that the export-led recovery we need may be beginning.
“This is coupled with an improvement in both profit and turnover growth, which companies expect to increase in the year ahead.”
Firms who took part in the survey noted a 1% increase in staff in the last year and plan to increase headcount by 1.5% over the next 12 months, which could result in more job opportunities for contractors.
The ICAEW chief executive, Michael Izza, said, “There was a risk that, combined with the traditional January blues, the bad weather and some high-profile retail collapses, talk of a triple-dip recession could become self-fulfilling.
“These results show that we are set to avoid a third period of technical recession, but no one should be complacent. There is only one way out of our economic malaise, and that’s to increase our economic output. Such a task isn’t going to be easy, or indeed quick.”
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