Confidence levels among accountants in the North West have plummeted to the lowest level in two years, according to recent research. The Institute of Chartered Accountants in England and Wales has collaborated with Grant Thornton to produce a new report, The UK Business Confidence Monitor.
Confidence among the region’s accountants has fallen to -10.5 from -6.4 during the third quarter of 2011. This is the lowest level since the first half of 2009, when the UK was still in the grip of recession. Two quarters in a row have seen confidence levels drop, as the UK economy remains weak. The figures are obtained by asking chartered accountants how they view prospects for their business, from -100 to 100. A negative figure shows that confidence has fallen in comparison with the previous year.
According to the North West accountants that were surveyed in 2011, the growth of turnover figure remains the same as it was in the third quarter of the year, at 2.7 percent in the last year. Growth in gross profits dropped to 1.9 percent for the last year to date, in comparison with 3.1 percent in the 12 months to the third quarter of 2011.
The president of the ICAEW, Clive Parritt told LDP Business that accountants were being affected by clients who were looking to cut costs. He said:
“There’s a lot of pressure on price. I don’t think good businesses are going to skimp on getting effective business advice from accountants, but there’s competition and some reductions in price.”
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