Confidence among business leaders in the U.K. improved for the first time in almost a year and a half even as growth prospects remain muted on government austerity measures, according to The Daily Telegraph. On Monday, the Institute of Chartered Accountants in England and Wales and Grant Thornton reported that the business confidence monitor showed a gain in business sentiment during May, marking the first increase since December 2009. The report said that the data are consistent with 0.8% quarterly growth in the three months to May.
The chief executive of ICAEW, Michael Izza, said, “Businesses are more optimistic about the future,” adding, “They are, however, wary of the reality that the recovery is going to be slow.” The ICAEW chief also said that some companies feel pre-recession levels of growth “are not likely to be seen again for some time.” Manufacturing and engineering was found to be the most upbeat sector. Separately, the monthly households finances index from Markit posted a small gain in May, reaching 46 from 33.4 the prior month, although that level is still below the critical mark of 50, indicating a decrease in sentiment.