Business confidence has hit a low not seen since the dot.com crash eight years ago, a study finds.
Accountant BDO Stoy Hayward’s business trends report, which draws from numerous surveys, has revealed business confidence has fall from 100.0 in July to 97.4 in August.
Short-term confidence has also been hit hard. The company’s output index fell to 95.2 from 97.2 over the same period – its lowest since 1991.
“This double blow for UK business confidence will intensify pressure on the MPC to cut rates,” said partner, Peter Hemington.
However, he added that if inflation continues to rise the Bank may well hold off any cut and leave rates unchanged.
With business conviction at a low, firms who would have previously considered moving into commercial property in London are biding their time.
All the capital’s firms have suffered as a result of the global credit crunch, which has constricted borrowing and pushed values lower.