Pictured: Jonathan Riley - Grant Thornton
Business optimism in the UK has dropped by 22 per cent since July making it one of the least optimistic countries in Europe, according to the latest international research from Grant Thornton. However, 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 from Grant Thornton's quarterly International Business Report also show that 59 per cent of Northern businesses are expecting to increase turnover in the next 12 months; 49 per cent expect profits to grow; and 36 per cent expect to create more jobs.
"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,” said Jonathan Riley, senior partner for Grant Thornton in Yorkshire. "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.
“However, despite this, businesses in the North have remained resilient with these latest figures showing that they do see opportunities in the year ahead. In particular, the confidence of UK manufacturers to explore new markets for export is crucial and it is very encouraging to see more than a quarter of Northern businesses expecting to increase sales overseas in 2012. Any business with good exposure to export markets, particularly growing economies such as India and China, will be less affected than sectors that rely solely on domestic demand."
Grant Thornton is a member of Grant Thornton International which has member firms in more than 100 countries providing extensive global reach.