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Small companies are more optimistic about their future as business confidence has hit its strongest level since the beginning of the financial crisis, a new report has showed.
British companies said they expect orders, sales and profits to improve over the next six months and that they intend to invest and recruit more, according to the latest 'Business in Britain' report by Lloyds TSB Commercial Banking. The report shows that businesses planning to boost investment and to increase staff numbers in the second half of the year are at the highest level since January 2008. Manufacturing firms have the highest confidence level at 38 per cent, while the retail & wholesale sector record the lowest, despite having improved for the third consecutive survey. Mr Oldfield said: 'It is encouraging to see that businesses are feeling more confident about their own trading prospects and anticipate an increase in orders, sales and profits over the next six months.

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Businesses also said that they are more positive about the global economy than they have been since the end of the recession in 2009, with 41 per cent of companies saying they were more confident than they were six months ago. Business confidence increased in all regions with the largest rise of 16 points witnessed in the East Midlands and East of England, followed by a 13 point increase in both the South West & Wales and South East.
The smallest improvements were in the North of England and Scotland, and London, which rose six and eight points respectively.
The news come as another report published today shows that the level of financial distress among British businesses fell by 39 per cent in the second quarter of 2013 compare to the same period last year.

Begbies Traynor said the figures indicated 'a significant turnaround in the health of the UK economy,' and that construction companies, professional services and financial services companies saw the biggest improvement.
The Business Confidence Index, which tracks the views of nearly 1,800 firms twice a year, has soared above its long-term average of 21 per cent to 30 per cent for the first time since January 2008.

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