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Businesses should stay cautious during 'patchy' recovery

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Businesses should stay cautious during 'patchy' recovery

Thursday, 14/1/2010 01:41
Business leaders and logistics chiefs should remain cautious during the coming months as the UK readies itself for a "patchy" economic recovery, an expert has advised.

According to the British Chambers of Commerce, business confidence is likely to rise gradually over the first quarter of this year, but firms must remain grounded.

David Kern, chief economist at the organisation, said companies should prepare for an upturn in the economy, but warned that any recovery will be fragile and uncertain.

"The recovery is clearly patchy, and the implication is that businesses have to be very cautious," he explained. "They have to make sure they have enough cash, they mustn't expect a boom."

Mr Kern added that there would be no need for any pessimism during the initial stages of 2010, but also warned against having too much optimism given the current climate.

His comments were made after a survey by PricewaterhouseCoopers revealed that activity in the UK financial services sector rose slightly in the final quarter of last year.

However, the growth was below the level many had expected and firms still expect business volumes to fall over the next three months, the poll revealed.
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