RTTNews - UK's business confidence monitor turned positive for the first time in two years, the Institute of Chartered Accountants in England and Wales showed Monday. The business confidence monitor climbed to 4.8, the highest since the third quarter of 2007 and also the biggest quarterly rise since BCM began. The reading for the second quarter was minus 28.2.

The institute forecasts the economy to expand 0.5% in the third quarter. According to Michael Izza, Chief Executive of the ICAEW, the UK economy is on its way to recovery. But the challenges ahead for businesses should not be underestimated.

The survey found that 41% of senior professionals were more confident about economic prospects facing their business in the coming year. But only 6% were much more confident, pointing towards caution regarding the strength and timing of the recovery.

Business confidence improved across all regions for the second straight quarter. Wales reported the highest reading of 16.9, followed by Scotland with 15.9. At the same time, London and South East were the most cautious.

Michael Izza said, Although positive growth in the autumn seems more likely, there are concerns about the strength of the recovery. Salaries are expected to remain squeezed and with no planned recruitment there is still an air of nervousness among UK businesses.

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