based on economist report
Seldom in recent years have British businessmen been more cheerful about their companies’ prospects, and found more reasons for being so, than they appear in the F.B,I.'s latest sampling of top Wsinoss opinion, The 644 replies to the F.B,I, konjunkturest show that 54% of them are more optimistic about the gonoral business situation than they were 4 months agog the balance of those reporting a rise in production over those showing a decrease has risen (only 1% indeed, reported a downtrend in the past 4 months); new orders for = and ebroad show a sizeable balance of increases over the fow declines, Most important as a concrete indicator of their confidence, for the first time ‘since June 1960 the companies expecting to euthorise more capital investment in the coming year than last year outnumber those who o* Still expecting to authorise less,
eeenttier more than half the firms replying still report that they are ~ opersting below capacity, but this is well down on 4 months agos since this time last year, the proportion working to capacity has risen from 34 to 42%seseeliuch of tho new capacity installed in recent yearsoffers considerable savings in latour, so that employment in general ssems unlikely to become a limiting factor in expansion for some while to come; bit as the main factors that may'hold down their output in coming months more industrinlists are once again citing skilled labour than were doing so earlier this year. Orders remain by far the most imp— ortant limitation, but the proportion of firms worried about these in the short run has dropped,
Looking ahead in the export field, industrialists are fairly optimistic too about foreign sales, with greater hopes in industrialised than in primary producing markats. Their main worry in meeting foreign competition is over export prices.....The National Institute of Economic and Social Research will soon be publishing a useful study of how well these F.B.1. figures work as an indicator or recent and shortterm future changes in the economy. Certainly most outside observers today trust most of the answers much more than they did when tho inquiries began; bit ia it not still asking too much to expect any business=— tian ever to admit that his costs are falling or his profits rising?
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