Entrepreneurs in the South report that their business confidence is at a record high, according to the latest bellwether survey of wealth creators.
The findings of the Smith & Williamson Enterprise Index underpin the raft of positive economic data of late as Britain shakes off the severest downturn of its kind since the 1940s.
Richard Green, the Southampton-based managing partner at the South Coast office of the accountancy and investment management group Smith & Williamson, said: “It’s very much a thumbs-up from job-making entrepreneurs in the South, which bodes well for the regional and national economy.
“The closely-watched Index, which relates to the first quarter of this year, is now at a record 108.7, compared to 90.1 in the second quarter of last year and well above the benchmark of 100 on January 1 last year.
“These results undoubtedly show the UK economy has now turned a corner, following six turbulent years, and 2014 has started with a bang. They also seem to reflect sentiment in the wider economy and we hope for steady and less volatile progress this year.”
Key findings from the report include:
· More than 90% of respondents expect the UK economy to improve over the coming 12 months
· More than 80% feel optimistic about their prospects for the upcoming year
· Less than half of job and wealth creators think that the employment pool is adequately educated or trained
· More than 70% do not think that the UK’s current immigration policy is hindering economic growth
Results correlate with recent economic growth data reported by the Office of National Statistics that show that the UK economy grew by 1.7% in 2013, with growth in the last quarter of the year at 0.7%.
Meanwhile the UK is set to be the world’s fastest-growing major advanced economy this year, at 2.9%, according to an upgraded forecast from the International Monetary Fund.
Richard added: “There is a note of caution, however, which entrepreneurs touched upon in the Index. Businesses are facing mounting concerns over finding recruits from the employment pool who have the requisite skills.
“The British Chambers of Commerce warns that that failure to equip young people with the skills that employers need could be a risk to future UK prosperity.”
