Business confidence 'needs maintenance'

Date: 22nd December 2009

Businesses need to remain confident in the coming months in order for the UK to return to economic growth.

That is according to George Derbyshire, chief executive of NFEA – the national enterprise network, who said that 2010 is expected to be a difficult year for businesses.

This is because "pre-election caution" is likely to affect investment decisions, which in turn will have a knock-on effect on companies' trading levels.

"Confidence needs to be maintained and needs to be translated into real economic performance," Mr Derbyshire said.

"Everybody knows that, whatever the outcome of the election, we are going to see big cuts in public expenditure … There is a danger that next year could be another tough year for many people."

Figures from Lloyd's TSB published last week revealed that business confidence is at a two-year high, with many firms hopeful of a turnaround in economic circumstances in 2010.