UK firms 'optimistic on economy'

It remains to be seen if there will be a good Christmas for retailers

UK businesses are optimistic about the outlook for the British economy, despite negative global pressures, a report by BDO Stoy Hayward has found.

According to the study, business people still expect the economy to grow by more than the current average annual rate of between 2.5% and 2.75%.

Concerns about the strength of growth have emerged in recent weeks as the global economy has suffered problems.

BDO said despite its upbeat findings, there are signs of pressures for firms.

'Above water'

"UK business is managing to keep its head above water, showing surprising resilience in the face of a multitude of global economic pressures, such as the rise in oil prices and the credit crunch," BDO said in its report.

The survey pulls together all of the main business surveys from the last month, the company said.

However, BDO warned that "despite its resilience, there are signs that UK business is feeling the pressure".

Its BDO Output Index, which tries to guage business confidence three months in advance, dropped to a reading of 100.4 in November, its lowest level in a year and a half, and down from 100.8 in October.