According to the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM), the confidence levels of the small businesses has fallen back in the third quarter of 2010. The data also showed that the recovery in UK is there, but there is more likelihood of drop in the second half of the year. The Confidence Index have remained to be considerably higher than which was during the recession when it was record low of –45.3. The Confidence Index is more when compared to the typical pre-recession levels.
As per the latest findings from BCM, there is a decrease to 21.5 percent in the Confidence Index during the third quarter of 2010 which is 4 points low when compared to the last quarter. About 54 percent seem to be more confident about economic prospects confronting their organization over the next 12 months when compared to the last 12 months. There a decrease of 5 percentage during the first quarter of 2010.
As per the ONS first estimate of GDP for the second quarter in July showed 1.1 percent economic growth quarter-on-quarter. There was increase in Output in services which is 0.9 percent, there was also increase in government and other services of 0.9 percent, 6.6 percent in construction and 1.6 percent increase in manufacturing.
There is slight recovery in the labor market when compared to the past 12 months in the proportion of the firms reporting staff turnover as a greater challenge, but still the proportion reporting availability of non-management skills as a greater challenge remains to be low than the past 12 months.