11 Oct, 2010

UK Business Confidence

Business confidence among UK firms has fallen to its lowest level since the depths of the recession, a survey suggests. The Business Trends optimism index from the accountants BDO fell to 91.6 last month, from 93.1 in August. BDO also called on the Bank of England to pump more money into the economy. BDO said this suggested the economy could stop growing early next year, and begin to contract between April and June. There are growing calls for it to expand this quantitative easing programme, not least from Adam Posen, an external member of the monetary policy committee. The Bank has already spent about £200bn on trying to boost the supply of money to stimulate the economy. Some economists believe that more stimulus measures are needed to counteract the upcoming government spending cuts, designed to reduce the country’s budget deficit. The Bank should inject another £50bn into the economy before the end of the year. Credit: ADP, Reuters,de-world.de

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