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| Business confidence at record low | Business confidence at record low |
| (40 minutes later) | |
| Business confidence in Wales is at a record low, with more pessimism about the future than the rest of the UK, according to a new survey. | Business confidence in Wales is at a record low, with more pessimism about the future than the rest of the UK, according to a new survey. |
| The Institute of Chartered Accountants in England and Wales (ICAEW) recorded a fall in its Welsh Confidence Index to minus 52.2 in 2008's fourth quarter. | |
| That is 24.4 points below the level reported three months ago and 15.9 points below the current UK level. | |
| The survey figures are at their lowest level since the index started in 2003. | The survey figures are at their lowest level since the index started in 2003. |
| Seventy chartered accountants from Wales took part and were asked how much confidence they had in the economic prospects facing their businesses over the next 12 months. | Seventy chartered accountants from Wales took part and were asked how much confidence they had in the economic prospects facing their businesses over the next 12 months. |
| The drop in confidence was announced at the end of a week when it was revealed that more than 750 jobs are at risk across Wales. | The drop in confidence was announced at the end of a week when it was revealed that more than 750 jobs are at risk across Wales. |
| They include 337 jobs which could go at the Hoover factory in Merthyr Tydfil, while in Miskin, near Llantrisant, 250 jobs are under threat at the Bosch motor industry component plant. Businesses are increasingly worried about how deep and long the recession will be and are now taking steps to prepare for a painful slowdown Michael Izza, Institute of Chartered Accountants in England and Wales | |
| David Lermon, Wales director of the ICAEW, said: "It is an extremely difficult time for businesses not only in Wales but across the UK as the latest Business Confidence Monitor confirms. | David Lermon, Wales director of the ICAEW, said: "It is an extremely difficult time for businesses not only in Wales but across the UK as the latest Business Confidence Monitor confirms. |
| "Businesses that have been prudent in the past with sound management should be able to offset the worst affects of the downturn. | "Businesses that have been prudent in the past with sound management should be able to offset the worst affects of the downturn. |
| "The [UK] government has made significant taxpayers funds available to banks and, in turn, they have to treat businesses fairly and be flexible when it comes to issues such as arrangement fees to help them through the coming year." | "The [UK] government has made significant taxpayers funds available to banks and, in turn, they have to treat businesses fairly and be flexible when it comes to issues such as arrangement fees to help them through the coming year." |
| The low business confidence comes after house prices in the country fell by 16.4% in the year to September, the largest year-on-year fall recorded for any UK region since 1990, according to the Halifax House Price Index. | The low business confidence comes after house prices in the country fell by 16.4% in the year to September, the largest year-on-year fall recorded for any UK region since 1990, according to the Halifax House Price Index. |
| In addition, the Office for National Statistics said prospects for the manufacturing sector - which accounts for over 13% of employment and 18% of economic activity in Wales - continue to worsen as it enters its eighth consecutive month of falling output. | In addition, the Office for National Statistics said prospects for the manufacturing sector - which accounts for over 13% of employment and 18% of economic activity in Wales - continue to worsen as it enters its eighth consecutive month of falling output. |
| Unemployment | Unemployment |
| The ICAEW survey also revealed that Welsh businesses expect turnover growth to slow to 1.4% in the coming year from 5.4% seen in the year to date. | The ICAEW survey also revealed that Welsh businesses expect turnover growth to slow to 1.4% in the coming year from 5.4% seen in the year to date. |
| Profits growth is also expected to be lower next year than last, with 1.2% growth forecast for the coming 12 months, compared to the 3.4% seen in the previous 12 months. | Profits growth is also expected to be lower next year than last, with 1.2% growth forecast for the coming 12 months, compared to the 3.4% seen in the previous 12 months. |
| Michael Izza, chief executive of ICAEW, said: "Amid recent announcements of the highest unemployment levels since 1990 and expectations that the economy will shrink sharply in the next 12 months, businesses are increasingly worried about how deep and long the recession will be and are now taking steps to prepare for a painful slowdown. | Michael Izza, chief executive of ICAEW, said: "Amid recent announcements of the highest unemployment levels since 1990 and expectations that the economy will shrink sharply in the next 12 months, businesses are increasingly worried about how deep and long the recession will be and are now taking steps to prepare for a painful slowdown. |
| "Any financial stimulus package should be focussed on helping businesses who are struggling through the difficult period. This will help keep people in employment and their homes." | "Any financial stimulus package should be focussed on helping businesses who are struggling through the difficult period. This will help keep people in employment and their homes." |
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