UK business confidence fell by 10% to its lowest level in at least 13 years in October, but was stronger than European peers, according to the latest Accenture (NYSE:ACN) / S&P Global UK Business Outlook.
At +18%, the net balance of manufacturing and service sector firms expecting activity to increase over the next 12 months was the lowest recorded since 2009.
The latest results compared with net balances of +28% in June and +56% in February.
However, despite tough economic conditions, the business outlook maintained a positive projection, with around 41% of surveyed firms expecting output to rise, against nearly one-quarter (23%) that project a decline.
Nearly all (12) of the 14 sectors covered by the survey predicted growth, led by strong expectations among manufacturers of transport and electrical goods.
Hospitality was the only industry to signal a pessimistic outlook, with fears of reduced customer spending and high energy costs.
UK companies were much more confident of a rise in activity than other countries in Europe (+4%), while firms in Germany and Spain gave negative projections for the next 12 months.
Simon Eaves, market unit lead for Accenture (NYSE:ACN) in the UK & Ireland, said: “As we head towards what is likely to be a tough winter for the UK economy, business confidence has understandably been shaken.”
“However, many British companies continue to demonstrate resilience in the face of economic difficulties. Hiring plans remain positive and overall optimism, whilst muted, is higher than many of our European counterparts.”