The future of the economy looks to be a brighter place for UK businesses as confidence has returned to pre-recession levels, say BDO Stoy Hayward in its latest report. The accountancy firm's Optimism Index rose from 99.4 to 103.2 in March; a high not achieved since the summer of 2006. The Output Index also improved, and has reached quarter three 2007 levels due to businesses re-stocking.
This renewed optimism is reliant on the three main political parties outlining their economic policies for the future, however, according to BDO.
The accountancy firm said: “The lack of information from political parties regarding concrete plans to tackle the deficit will be contributing to business uncertainty which in turn is keeping investment levels low in 2010."
In other encouraging news, activity in the construction sector of the economy picked up last month according to the British Chamber of Commerce. The CIPS Markit PMI construction index rose from 48.5 to 53.1 in March the first time in two years. However, construction businesses might be vulnerable to reduced government spending on building and infrastructure projects. Read our guide on how to buy a construction business by subscribing to the Business Sale Report.
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