Businesses remain 'cautious' on investment
Many businesses plan on cutting back on capital investment because of "growing concerns" about the economy, according to a new study.
The latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) has found that many companies will be "reining in plans for capital investment" because of a lack of confidence in the economic outlook.
The study also revealed that small businesses will be the main source of job creation.
ICAEW chief executive Michael Izza said: "This survey shows that businesses are responding to concerns about the economic outlook by cutting back on investment in equipment and people.
"At the moment, it is hard to see where this growth will come from and the Chancellor needs to use the forthcoming budget to give businesses reasons to be more confident about the future – and unlock potential investments."
Grant Thornton chief executive Scott Barnes said: "These figures are not as bad as anticipated and many of the companies surveyed are predicting at least some growth."
