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3i European barometer suggests business confidence recovering; results turnaround

Private companies' confidence in the economy and general business environment is continuing to recover strongly from the trough of the last two years. The 3i barometer, which measures firms' optimism about the business, political, and economic climate clawed its way into positive territory for the first time in three years in the latest quarter.

Brian Larcombe, chief executive of 3i, said: ‘This second quarterly improvement in confidence is encouraging and companies appear to be returning to a growth agenda.'

3i says the barometer has historically shown a close correlation to GDP growth across the 15 EU countries, which would reinforce mounting evidence that the region is now undergoing a broad-based recovery.

The index was positive in every country besides France, where sentiment deteriorated further in the latest quarter. The UK, Germany and Spain all saw a rise in their individual indices to their highest levels since 2000.

Separately, 3i released its six-monthly results to reveal a positive return for the first time in two years. The firm said it had achieved a net profit of £359m in the six months to the end of September, compared with a loss of £570m for the same period last year.

Brian Larcombe, 3i chief executive, said: ‘We have seen a strong turnaround in 3i's financial performance, as the benefits of changes to the business over the last two years have flowed through. With positive returns, a strong balance sheet and increasing corporate activity, 3i is well placed to increase investment.'

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