Business confidence hits new low

Business confidence in the South West has plummeted to the lowest in England and Wales, according to a quarterly survey.

The UK Business Confidence Monitor, compiled by a national accountancy body, showed that confidence had dropped 28.4 points in three months.

The region is now on a rating of -58.1, "far below" the UK average.

The survey counted Cornwall, Devon, Somerset, Dorset and Gloucestershire and Wiltshire as being the South West.

The tourism sector is showing a new low in confidence Jon Blake, ICAEW

Chartered accountants employed within a range of businesses in the South West were asked whether they felt more or less confident about the economic prospects for their company over the next 12 months compared to the last.

The South West was the only region where respondents said they expected their company turnover and profits to fall over the next 12 months.

Elsewhere in the country respondents estimated there would be some growth, despite the current recession.

The economic mood in the South West has changed dramatically from the beginning of 2008, when profits were expected to grow by 6.4%.

Jon Blake, south west director for the Institute of Chartered Accountants in England and Wales, said: "House prices in the South West are down almost 13% on this time last year.

"Tourism is an important part of the region's economy, with hotels and restaurants employing more of the region's labour force than in any other region.

"The sector is showing a new low in confidence, reflecting local worries over consumer spending."