Smaller businesses ''still confident'' - commercial mortgages

30 November 2007

Firms with commercial mortgages are still confident over future prospects despite expectations of a slight economic slowdown, the British Chambers of Commerce (BCC) has insisted.

Speaking on BBC Radio 4''s "The World Tonight", BCC director general David Frost admitted that there was some concern but said that the credit crunch had had a negligible impact on firms thus far.

But businesses are nonetheless factoring in an expected dip in output into their plans, Mr Frost noted.

"I have spent the last few days touring the Midlands and the North talking to these businesses, getting a feel for how they see the current economic climate and I have to say there is real confidence out there," Mr Frost told the programme.

"Some expect perhaps a slight slowdown, but nothing dramatic. I am impressed by how resilient business is."

"A the moment they are saying that things are doing remarkably well, yes they expect a bit of a dip and they are planning for that, but really nothing extreme," the director general concluded.

Analytics firm Global Insight has said that it expects GDP to slow to 1.9 per cent in 2008.