UK recession 'over' as business confidence jumps: study

Recession in the UK may be at an end, according to a study which reveals the biggest increase in confidence amongst business professionals in two years. The survey by the Institute of Chartered Accountants in England and Wales (ICAEW) found a dramatic turnaround in confidence among professionals, from -28.2 at the end of March to +4.8 at the end of June.

The ICAEW pointed out that the jump was the highest since 2007 - the first move into positive territory for two years. The study questions more than 1,000 chartered accountants.

Strengthening sentiment was the fact that professionals expected increases over the next 12 months in 13 out of the 14 financial performance indicators that the research looks at.

Michael Izza, the chief executive of the ICAEW, said that the study "suggests the UK recession is at an end".

According to Izza, policies such as quantitative easing and interest rate cuts by the Bank of England and a reduction in VAT had helped businesses ride out the financial storm. VAT was reduced from 17.5 per cent to 15 per cent in December in a bid to boost consumer spending during the recession.

Businesses also helped themselves, Izza said, by taking correct decisions to ease the slump - such as cutting staff.