Reasons To Be Cheerful! Economy On Mend

Britain's economy is showing positive signs of a quicker recovery than was thought possible.

- Robert Kellaway

Analysts said business confidence was soaring, while inflation was falling fast - and they also predicted actual growth this year, scotching fears of recession.

One said there were "reasons to be cheerful about the UK economy and markets". Victoria Scholar, head of investment on the Interactive Investor platform, added: "UK investors have been facing a fairly grim backdrop of sluggish growth, the war in Ukraine, rampant inflation and falling real wages.

However there are now a growing number of reasons to be cheerful." Optimism spread and the FTSE 100 index recorded a seventh consecutive day of gains yesterday.

Hywel Ball, UK chairman of accounting giants EY, said: "The UK economy seems to be turning a corner. Economic performance has been resilient, despite challenges in the latter half of 2022. Inflation is still in double digits and energy prices remain historically high.

Confidence is up and inflation down... UK seems to be turning a corner'

"However, perceptions matter and the fact the economy has been able to outperform expectations could help stir a revival in business and consumer confidence." A report by consultants Deloitte found confidence among business chiefs was rocketing: "Sentiment among finance leaders of the UK's largest firms has improved significantly since the start of the year.

"A net 25 per cent of chief financial officers are more optimistic about the financial prospects of their business than they were three months ago." Ian Stewart, Deloitte chief economist, said: "The economic unpredictability that marked the beginning of 2023 has started to clear.