Many have heard that US companies are having a lot of trouble with staying afloat, keeping their credit lines solid, keeping employees, etc. But many in the UK know its just as bad there right now, in fact, even worse in some ways.

UK business leaders are suffering a crisis of confidence with short term business confidence in the UK plummeting by 29% since last year, the lowest since 2003, according to the PricewaterhouseCoopers 12th Annual Global CEO Survey. That’s truly a scary figure, and will impact the ability of the average citizen to get credit with these companies. They’re being much tougher on applicants.

Nevertheless, business leaders see a flicker of light at the end of the tunnel, with more optimism about recovery and growth over the next 3-5 years.

Growth expectations have been severely impacted by the unprecedented economic and financial turmoil. As the economic downturn deepens, the mindset of the UK CEO has had to change, rebalancing short term survival with long term ambitions.

Many are now opting for lower risk strategies for growth: financing expansion from internally generated cash flow, retrenching into existing markets rather than seeking mergers and acquisitions (M&A) to grow market share and reducing spend on new product development. Despite this, UK CEOs still recognise that they must not lose sight of important drivers for long term success, such as retention of talent and planning for global issues such as climate change.

Hopefully, this will turn around and companies will experience growth and prosperity once again.