Recovery hits stumbling block
Article Date: Oct 08 2009The trend of rising output expectations in the UK has gone into reverse, according to research from accountancy firm BDO Stoy Hayward.
The BDO output index has dropped from 96.3 to 95.8 after seven consecutive months of climbing expectations, while the firm’s optimism index also fell slightly from 96 to 95.8.
BDO partner Peter Hemington says, ‘We are on the home straight out of the recession but the race to recovery is a marathon not a sprint.’
Both indices remain above the 95 mark which indicates increasing output ahead.
Adds Hemington, ‘To assist the lending recovery and counteract expected tax rises and spending cuts, the Bank of England's asset purchase programme should be continued.
‘Further tax increases unfortunately are inevitable but public spending needs to be cut.’
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