18 July 2011

Not so sunny in the UK

According to a recent report in the International Business Times.

U.K. small firms report big drop in sentiment
The U.K.'s small business confidence has fallen dramatically during the three months to 30 June. FSB figures show that businesses were less confi-dent in the second quarter of 2011 than they were at the start of the year as the FSB „Voice of Small Business' Index fell by 6.4 points in the first quarter from +6.7 to +0.3. If the index registers zero it means there has been no change in confidence from the previous quarter. The higher the score is above zero, the greater the confidence of small businesses. The FSB is calling on the Government to cut VAT in the construction and tourism sectors to five per cent for a year to help give the economy a real boost. Consumer demand is a large barrier to economic growth so a VAT cut would encourage people to spend in these areas. Firms that sell or repair motor vehicles are the least confident with an Index score of -45, which is a 65 point drop on the previous quarter. The survey, which interviewed 1,633 small business owners across the UK, found that confidence had fallen in 13 of the 18 sectors it monitored. Financial services, manufacturing, and the computer industry were the most confident sectors, the survey found.

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