Business confidence at two-year low - papers 19 Nov

The continuing credit squeeze, higher interest rates since August last year, and a slowing housing market have caused finance professionals to become pessimistic about business prospects for the coming 12 months. The downbeat mood extends across sectors, regions and business size, despite the fact that the economy is still growing at around 3% a year. Michael Izza, the chief executive of the ICAEW, said: “The current divergence between the Business Confidence Index and economic growth is likely reflecting a turning point for the economy. “Although it is too early to judge the full impact...