UK recession is 'at an end'

Monday 24th August 2009

The UK recession could be at an end, a survey from business professionals has said.

A survey from the Institute of Chartered Accountants' index of business confidence found the biggest rise in business confidence in two years.

The index showed business confidence rose to 4.8 at the end of June, from minus 28.2 at the end of March. But chief executive Michael Izza warned the "recovery is still fragile". The increase was the highest since 2007 and the first move by the study, which questions more than 1,000 chartered accountants, into positive territory for two years.

The institute have predicted the UK economy will grow by 0.5 per cent over the third quarter, despite it shrinking 0.8 per cent in the last quarter.

Mr Izza said: "This quarter's business confidence monitor suggests that the UK recession is at an end.

"While there is no doubt that the UK economy is on its way to recovery, we shouldn't underestimate the challenges ahead for businesses.

"Policies such as quantitative easing, the fall in interest rates and the VAT reduction have all helped improve business confidence. However, the recovery is very fragile and I would urge policy makers not to take any actions that could derail it."

He added: "Although positive growth in the autumn seems more likely, there are concerns about the strength of the recovery."

About 41 per cent of senior professionals were more confident about their business prospects in the next year, but only six per cent were much more confident, indicating caution remains.

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