Business Confidence of UK faces record drop

EconomyA survey suggests that the business confidence across the UK firms has faced its biggest fall since 1995 because of the decision of the spending cuts from the government. The Business Trends survey BDO has fallen down to 97 in the month of May from 103.3 in the previous month and it was the largest drop from the begging of this survey.

According to BDO, the forecast of the economic growth for this year and next year should be revised very sharply and carefully. A new forecast is to be published by the new Office of Budget Responsibility or OBR. The OBR was formed in the may of 2010 and it was made to take independent decision over public finance and economy.

The survey of the BDO has done by the Center for Economics and Business Research and it covers 11,000 companies from different industries. The order book growth was very strong in May despite of the big fall in confidence. In its new forecast the accountancy firm has said that the economic growth will stay below an annualized 1% in the final quarter of this year.