Click here for printer friendly page

3i European Barometer shows marginal increase in confidence for private companies

Private equity-backed companies in Europe are a little more confident about the general economic outlook than at the end of 2002, according to the latest 3i Barometer, which measures private companies' confidence in business, political and economic climates.

The index, which sank to an all-time low of negative 114 in October 2002, crept up to negative 73 in January 2003.

Brian Larcombe, chief executive of 3i, said that it was encouraging to see the fall in confidence bottoming out. He added that the fact companies were also taking positive action to position themselves for an upturn was even more encouraging.

‘However, we must all recognise that confidence in the current economic environment remains fragile,' he warned.

Confidence was at its lowest in the UK and in Germany, reflecting concern about the feeble state of the global economy and concerns over war with Iraq. In the UK the index dropped all the way to negative 107, its lowest level since the end of 2001.

The proportion of 3i-backed companies expecting an increase in sales in the current quarter rose to 29 per cent in January 2003, from 21 per cent in October 2002. And some 56 per cent of 3i-backed companies said that they believed that economic conditions would have begun to improve by the end of 2003.

Copyright © 2003 AltAssets