Optimism waning but North resilient

Optimism has dropped by 22 per cent since July making the UK one of the least optimistic countries in Europe, according to the latest research from Grant Thornton.

But more than a quarter of businesses in the North see opportunities ahead with 26 per cent expecting exports to grow over the next year.

The figures also show that 59 per cent of Northern businesses are expecting to increase turnover in the next 12 months.

Some 49 per cent expect profits to grow and 36 per cent expect to create more jobs.

Jonathan Riley, senior partner for Grant Thornton in Yorkshire, said: “UK businesses have been operating in a difficult market for some time now and have learnt to cope with constraints such as reduced customer demand, shortage of working capital and the high cost of finance.

“Since July, the intensity of bad news in the eurozone and the growing pressure on consumer disposable income has meant that many feel that the light at the end of the tunnel is not getting any closer.

“Despite this, businesses in the North have remained resilient with these latest figures showing that they do see opportunities in the year ahead.”

He said that the confidence of UK manufacturers to explore new markets for export is crucial for future growth.