UK business executives are less confident
about economic growth but more optimistic about the survival of
their business, according to the Q2 Chartered Institute of
Management Accountants (CIMA) Business and Economic Outlook
Survey.
CIMA’s UK economic prospects index fell 12
points below the level recorded in the first quarter of the year.
This has largely been attributed to additional bank holidays in
April with stronger growth forecast for the coming
months.
Concerns about the future are being fuelled by
a decrease in customer demand, which was cited by 60 percent
of respondents as the major business challenge.
In addition, 67 percent of
respondents are worried about the effects of government
spending cuts, which was the greatest factor curbing optimism about
the economy.
Just over a quarter of respondents expect
government spending cuts to have a direct impact in the reduction
of full time equivalents in 2011.
Business confidence on the
rise
While CIMA members are uncertain about the
economy, there is growing confidence in the future survival of
their businesses. The number of respondents that are ‘extremely
confident’ about the survival of their business has doubled in the
past quarter and the primary reasons for this include the recovery
of the banking system and improved employment prospects.
Six out of ten respondents were aware that
their company has a sustainability strategy in place, 13% were
unaware and 27% said that their company had no such
strategy.
Just over half (51%) of respondents said that
the organisation they worked for had the necessary skills within
their company to become a low carbon and resource efficient
organisation.
The survey was conducted among 1,094 CIMA
members, including the views of 159 members at director and board
level, who completed an online survey between 15 and 30 June
2011.
