There's optimism in the air, according to the Institute of Chartered Accountants of England and Wales (ICAEW). Their latest quarterly Business Confidence Monitor shows confidence rising for the third successive quarter: it is now +24.6, up from +4.8 in the third quarter and a significant reversal of the -36.3 of a year ago.
The ICAEW says key financial indicators, such as planned investment and recruitment have showed tentative growth. So senior business professionals are not overjoyed, but they are not despondent either: 49% said they were slightly more confident about economic prospects facing their company in the next year and only 9% were much more confident, highlighting the fragility of the recovery.
Companies still report a decline in profits, turnover and sales over the last year, but the rates of decline have eased. Exports have held up, thanks to the weak pound, 'and are expected to grow by 3.3% over the coming 12 months – the strongest outlook in a year.'
Perhaps SMEs are now more encouraged to grasp opportunities offered by the recession. The Telegraph reports on the rise of 'pop-up' shops, with small businesses across the country taking advantage of short-term leases on vacant high street space in the run up to Christmas.
According to the newspaper, major retailers have also rented temporary space. For example, it says 'HMV has opened 10 temporary shops around Britain, while upmarket department store Harvey Nichols has set up a pop-up food and wine store in Manchester's Trafford Centre. Even the company behind Marmite is experimenting with a temporary store on Regent Street in central London.'
Of course, businesses and shops are no use without customers, so let's hope that consumers are feeling equally upbeat about the future.
