Business

UK business confidence 'growing'

Money
Image caption Some 57.1% of firms plan to boost their marketing budget in 2012, while 18.6% plan to cut it

The number of UK businesses planning to increase their spending on marketing has risen sharply from last year, a survey suggests.

A net proportion of 38.5% of businesses intend to raise their marketing budgets this year, according to a survey of more than 2,000 firms carried out by research group Mindmetre.

In 2011, the survey showed no net increase in companies raising spending.

Mindmetre said the results showed that business confidence was growing.

The survey comes at a time when many fear the UK will slip into recession.

On Tuesday, a survey by the Institute of Directors showed one in three UK company directors thought there was a high or very high risk of the UK falling into recession this year.

In Mindmetre's research, 57.1% of companies said they planned to boost their marketing budget in 2012, while 18.6% said they intended to cut it.

In 2011, 41% planned to increase marketing spend, and 42% planned to cut back.

The survey, which covered businesses of all sizes, also showed a higher proportion of big businesses (those with more than 1,000 employees) intended to raise their marketing budget than small businesses.

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