U.K. Business Confidence returns to 2007 levels.

A recent survey, held quarterly by one of the UK leading accounting companies, has revealed that Britain’s top companies are more upbeat about future prospects than they have been for around two years. However an underlying tone of caution still lies close to the surface.

The survey continues to reinforce the generally more upbeat mood among UK economists and business leaders, while the next major indicator that things are moving in the right track, will come with the announcement of the latest GDP figures dues to be announced by the Office of National Statistics this coming Friday. General expectations are that the figures will signal a formal end to the recession in this country.

Financial directors of some of Britain’s leading companies, take part in the survey at the end of every quarter, with many reporting that they were feeling that the economy was growing steadily stronger, although few were prepared to admit that they see the UK to return to strong economic growth any time in the near future.

A considerable factor in current growth patterns was the continuing easing in the credit markets, with many of the companies who took part in the survey, reporting that modest borrowing is finally become more widely available. However, the survey also showed a common trend among the finance directors who participated of caution regarding the short-term outlook, with many warning that the climate in which their companies trade has changed, and will likely to limp along for the foreseeable future.

Whilst it is understandable that financial officers will be reluctant to wax lyrical about the future of the UK economy, there is no escaping the fact that many companies are now considering some form of expansion. Some 92 per cent of finance directors expect a rise in mergers and acquisitions activity over the next 12 months, while 39 per cent leaked that their company are currently contemplating corporate acquisitions in 2009 and 2010.

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Tags: British Economy, Credit Crunch, Economy, Employment, Financial News, GDP, Money, Office of National Statistics, Retail, survey, U.K. Business, UK economists, UK Economy, UK Recession