I have to confess that I didn’t really want to write this blog, because I fear that I am now contributing to the self-fulfilling prophecy that says we are talking ourselves back into recession again…
We, as business owners and managers, need confidence. Confidence from our customers. Confidence from the banks. Confidence from our suppliers. Confidence from our staff. Yet all we hear at the moment is more doom and gloom; about the UK economy, about the implosion of the Greek economy and its consequences for the entire Eurozone; about the housing market; about unemployment levels. I could go on, but I won’t. However the media does, constantly. And that drives down confidence, which stops people and businesses spending because they are scared of what might be coming round the corner and the economy grinds to a halt.
Yesterday, we blogged about the IoD’s Route Back to Growth plan, which gave some practical suggestions for action that can be taken to get the UK’s economy growing again. However, another business organisation, The Chartered Management Institute (CMI), has issued its own report which effectively erases the little optimism we may have dared to feel.
The CMI surveyed more than 600 business managers and its report shows that just one in 12 believe the economy will grow over the next year, compared with one in six during a similar poll earlier this year.
More than two-thirds feel the economy will sink back into recession and three out of four believed business insolvencies will increase.
The survey results also delivered another blow to the Prime Minister’s hopes that the private sector can fill the gap left by the public sector rundown. They show private sector managers are most pessimistic about the employment outlook with 81pc expecting further cuts compared with 73pc in the public sector.
There are also signs of impatience with the speed of the spending cuts. While 60pc expect their business to suffer from the reduction in Government spending, 25pc are critical about the way the programme is being handled.
As a result of the survey, the CMI has called for the coalition Government to go further and faster with its deficit reduction programme to improve longer-term prospects and introduce incentives to provide some growth stimulus.
See, I bet you feel pretty deflated after reading all of that, don’t you? And for that I apologise. So let’s stop wallowing and worrying. Let’s be proactive. Let’s work together. Let’s support positive initiatives such as the Get Britain Trading campaign and let’s stop allowing ourselves to be dragged down by the doom and gloom news.