UK Business Confidence Index hits the lowest in 5 years

Apart from US, where the consumer and business confidence is at its rock bottom, it’s now the turn of UK to declare the bad news. The business confidence in UK has been downgraded or fallen to its worst level in last 5 years, according to a new study from the Institute of Chartered Accountants in England and Wales (ICAEW).

Not that this is the first time when the business confidence has shattered, what is more worrying to the analyst is the pace at which the business confidence has come down significantly. It has been observed since the beginning of the new year, that there is a widespread fear of a US recession, which can as well led to a complete massacre of the world economy leading it to a global recession, as the world is still highly dependent on the US consumers for dumping its productions and exports. Another aspect of this study is to do with the slowdown in the housing or real estate markets as well as the global credit crunch crisis.

The ICAEW's index which measures the business confidence is now at -7.2 (negative), which has deteriorated further from -3.9 at the end of previous year, and from a high point of 11.5 (positive) just a year ago. The numbers are based upon surveys of chartered accountants that advise businesses around the country. No doubt, we are looking forward to a very tough year ahead in 2008.

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