UK Market Confidence Falls

UK business has been dealt a significant blow by recent market conditions, and the unrest across the pond, according to a report released today.

With stock markets thrust into violent decline over the last few weeks, and ongoing problems in the US economy, UK market investors are beginning to feel the heat, and are losing confidence in the near future of their market.

The BDO Stoy Hayward index of investor confidence dropped to its lowest point in August for over two years, reflecting the level of perceived unpredictability in the future of the stock market.

The news comes just a week after the equivalent German index also reported a significant drop in investor confidence, highlighting the widespread degree of damage the situation in the US has had on the world outlook.

Just a year before, the UK economy was booming with the FTSE 100 riding high off the back of strong investor confidence. However, the ongoing situation in the US has served to catalyse what many had predicted as the inevitable decline of the UK economy.

Figures also released today reflected a downturn in recent consumer spending, with a reported fall in the number of consumers hitting the high street over the bank holiday weekend, which underlines the impact of tightening markets worldwide.

The US economy has resulted in widespread unrest and volatility on stock markets worldwide, which has had a knock-on impact on the health of economies the world over. With liquidity becoming increasingly scarce, businesses and consumers alike have opted to remain prudent in the face of possible global recession.

With the sub-prime situation set to continue and intensify over the coming months and years, and the growing threat of agricultural inflation, the outlook for the immediate future of the world economy looks to be dimming.

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