The London Chambers of Commerce has recently released figures that showed that UK business confidence has dipped sharply during the third quarter of 2005 and has reached levels lower than at any point since the first quarter of 2003 when the Iraq War commenced.
The figures were taken from the London Chamber of Commerce and Industry’s quarterly Monitor survey. About 165 statistically-balanced firms in both London and the South East were polled for the survey.
Of the total number of company directors that were interviewed, 44 percent had expressed pessimism about the UK economy. They expect economic growth to continue its downward turn for the next 12 months. Only 13 percent of those interviewed expressed optimism about the economy. About 43 percent has expressed their opinion that the situation will stay the same.
The businessmen’s confidence regarding the London economy and its future prospects deteriorated sharply for the third quarter of this year. Thirty-two percent of businesses are foreseeing a worsening in the capitals economy for the next 12 months compared to just 24 percent who are predicting the opposite.
This is also the second consecutive quarter in which businessmen’s confidence in the performance of both the UK and London has hit new lows post-Iraq War.
Company formation and business solutions experts have expressed hope that even with the not-so-positive view about the UK economy it will not deter would-be entrepreneurs from setting up their own businesses. They said that keeping the entrepreneurial spirit alive despite the situation is what will bring the economy back on course.