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Business confidence 'signals end of recession'

25th August 2009

Business confidence is improving in what is considered a sign that the 'recession is at an end', a new survey has found.

Professional confidence has moved into positive territory for the first time in two years, the Institute of Chartered Accountants' (ICAEW) Business Confidence Monitor has revealed.

The ICAEW also indicated there will be 0.5 per cent GDP growth in the third quarter.

Michael Izza, chief executive of the ICAEW, claimed that there is 'no doubt' the UK economy is on the mend.

He said: 'Businesses have taken the right actions to mitigate the impact of the downturn and are playing their part in an improving economy.

'Policies such as quantitative easing, the fall in interest rates and the VAT reduction have all helped improve business confidence.'

Business confidence increased by the second consecutive quarter across all regions, with the highest rises in Wales and Scotland, followed by the north of England.

Chancellor Alistair Darling has made a more cautious assessment of the UK's recovery, underlining the importance of banking sector stability.

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