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Venture capital company 3i has released its latest European Barometer index, which claims that confidence in private European businesses is on the rise.
According to 3i, the index shows the UK is closing in on positive territory and is registering its best level for 18 months. The index now stands at -7, with better results returned by both the manufacturing and non-manufacturing sectors.
In fact, the venture capital company said that a majority of companies surveyed in the UK survey expect to employ more staff by the end of this year than they did at the end of 2001.
The 3i UK Enterprise Barometer is compiled every quarter from the responses of a sample of companies in the UK in which 3i has an investment. The sample size was 550 and the initial base of +100 was established in January 1988. The Index reached its highest level of +142 in the first quarter of 1994 and its lowest level of -170 in the first quarter of 1991.
Throughout Europe, the index showed that confidence amongst private companies continued to improve, 3i claimed. The 3i European Barometer index rose to -39 compared with -64 shown at the time of the last survey in March. This is the second survey in a row to register an advance in confidence levels for both the UK and European indices.
The index hit a record low of -109 towards the end of last year following five successive falls and 3i attributes this rise to advances in four out of the five leading economies in Europe. The index in Spain, for example, moved into positive territory for the first time in 18 months and in Italy the index hit zero.
However, confidence fell in Germany, although private companies there have become more confident about their immediate turnover prospects, claimed 3i.
"It is good to see confidence improving across Europe after 18 months of tough conditions," said Brian Larcombe, chief executive of 3i. "In the UK the upward trend is noticeable and, although continental Europe is generally still weaker, the Barometer for Spain is now positive and Italy nearly so. This Barometer seems to provide good evidence that many of the economies in Europe are improving."
The 3i European Barometer was started in June 1998 and is compiled every quarter from the responses of a sample of companies in the UK, France, Germany, Italy and Spain in which 3i has an investment. This survey was carried out between 02 April and 03 May 2002.
The European index uses the same base as the UK Barometer and it is weighted by size of country (as measured by GDP). It reached its highest level of +81 in June 1998 and its lowest level of -109 in the last quarter of 2001.
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