It has been a generally good year for business confidence, which has grown to a 13-month high in the latest BDO Business Trends report.
The BDO Optimism Index now stands at 94.3 points (June 2013), its highest level for over a year, and a fifth consecutive month of growth.
A level of 95.0 points is an indication of growth in any particular sector, which makes the services sector’s score of 95.5 particularly significant.
But BDO partner Peter Hemington warns that previous cycles of optimism have been short-lived in the face of a lack of real returns on business confidence.
He explains: “We should be mindful of the zigzag trend that has characterisedUKbusiness confidence since 2008.
“Periods of improved confidence have ended before growth has really begun to get going.”
The current level of 94.3 on the Optimism Index compares with 93.6 in May 2013, 93.0 in April 2013, and 93.5 in June 2012.
However, it could be a difficult time forUKbusinesses as Bank of England governor Mervyn King steps down and his successor Mark Carney takes the reins.
Mr Carney faces “an even more interesting” set of challenges than he may have expected, according to Mr Hemington, and the source of those challenges is different from in previous months too.
Whereas Eurozone shocks hit British business confidence in the past, now it is the Federal Reserve in theUSthat is taking action that could “choke off yet another nascentUKrecovery”.
British businesses will need to commit themselves to blue-sky thinking this summer, if they are to remain optimistic until recovery truly takes hold.