Business confidence jumps.

LONDON, Nov 23 (KUNA) -- Business confidence continued to grow in the last

three months but the economic recovery is still seen as "very fragile", an

industry body said Monday.

A survey by the Institute of Chartered Accountants in England and Wales 

(ICAEW) found optimism jumped from a measure of 4.8 in the previous quarter to

24.6 - the highest reading for the survey since it began in 2003. But as

confidence is measured relative to the previous year, the number reflects the

rebound in optimism from the minus 36.3 figure a year ago when businesses were

engulfed by the financial crisis.

The ICAEW stressed that while companies were more positive on the outlook,

with plans to tentatively increase investment and recruitment, tight credit

conditions and concerns over consumer demand continue to trouble firms.

Michael Izza, chief executive of the ICAEW, said: "The UK economy is

undoubtedly in better shape than this time last year and the improvement in

confidence shows the relief businesses feel to have kept their heads above

water.

"Although we are still on track for a return to economic growth, the

recovery is very fragile and will take time." The survey comes amid

expectations of a return to growth for the UK economy in the fourth quarter,

after a shock 0.4% fall in output between July and September.

According to the research firms continued to report falling profits and

sales over the last year, but the ICAEW said the rates of decline were

moderating and businesses expect a "reasonable rate of growth" in the future.

The survey indicated that banking, finance and insurance firms were much more

confident than other sectors, while manufacturing and engineering respondents

saw a big increase in optimism.

Across the UK, Scotland was the most upbeat, followed by the East of

England.

London and the South East of England had the largest increase in

confidence, while Yorkshire and Humberside was the least optimistic.

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