Business Confidence 'Recovers After Post-Brexit Vote Panic'

There is further evidence that the initial shock of the UK's vote to leave the EU has waned, with businesses joining consumers in feeling more optimistic.

A monthly business survey has found that more than half of the confidence lost in the aftermath of the referendum has been recovered.

But while the findings for the YouGov (LSE: YOU.L - news) /Cebr UK Economic Index showed firms are now a bit happier about their own outlook, they remain deeply worried about the UK's economic prospects over the next 12 months.

The report said 48% of the 500 decision-makers surveyed had an optimistic outlook last month - up from 46% in July but still below the 53% figure recorded before the vote.

It was explained by improved expectations for capital investment, revenue from domestic sales and revenue from exports over the next year - partly due to the weaker pound, the report said,

The numbers concerned about the overall economy remained at almost double the level witnessed before 23 June, with 45% pessimistic.

The findings follow a raft of recent economic data pointing to a recovery in output and consumer confidence .

Just this week, house price figures from Nationwide (LSE: NBS.L - news) pointed to an uptick in growth while a closely-watched survey of manufacturing purchasing managers pointed to a 10-month high for activity.

The Cebr warned that any sign of recession, which some economists have warned could be a possibility next year, would likely rein in investment and hiring.

Stephen Harmston, head of YouGov Reports, said: "For the most part, the panic we saw straight after 23 June has been replaced by calm."

He added: "What happens in the longer term is the big mystery. Once the UK shows its hand on Brexit and invokes Article 50 things could change for the worse quickly.

"But as businesses and consumers don't know when this will happen, they have seemingly decided to just get on with it."