Britain's businesses more optimistic than overseas rivals

Research group Markit said its barometer of business sentiment in the UK – the percentage of companies expecting activity to increase in the next 12 months minus the percentage expecting a decline – is at 55 per cent.

That is down from 61 per cent over the summer and 66 per cent in February but higher than the United States, at 31 per cent, and Germany, which scored 24 per cent.

France clocked up a ‘net balance’ of just 13 per cent – the lowest since June last year and the weakest score of all the major European economies.

The report found global confidence at a five-year low. ‘Clouds are gathering over the global economic outlook, presenting the darkest picture seen since the global financial crisis,’ said Chris Williamson, chief economist at Markit.

‘Of greatest concern is the slide in business optimism in the US. There’s also little sign of the eurozone’s malaise ending soon.’

British firms flagged a number of risks – including recession in the eurozone, the general election in May, and the prospect of higher interest rates.

‘The UK will continue to outperform its peers in 2015, albeit with growth slowing from that seen in 2014,’ said Williamson.

The CBI called on the government to invest in roads and infrastructure ‘to keep the recovery motoring’.

Speaking ahead of Chancellor George Osborne’s Autumn Statement next week, CBI director general John Cridland said: ‘The UK recovery is on solid ground but it is in increasingly stark contrast to what’s happening elsewhere in the world.’

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