A survey of UK businesses says short-term business prospects have improved, with the consensus on current trading levels at a 12-month high. However the eurozone crisis may harm longer-term growth, says the report on the survey by the Centre for Economic and Business Research for business services firm BDO LLP. BDO’s Optimism Index has dropped for the third consecutive month, from a peak of 98.0 in February to 95.5 in May.
That index, measuring expected business performance two quarters ahead, suggests that UK firms expect growth to tail off later in 2012, according to BDO.
The government should consider boosting growth by spending on infrastructure, taking advantage of the low cost of government borrowing, he urged.