Expectations of profit growth among mid-market companies have sunk to a three-year low although overall confidence in the economy remains stable, according to a new survey. Grant Thornton UK’s business outlook tracker survey in October showed that 39 per cent of respondents expect their businesses’ profits to increase over the next six months, down from 69 per cent in February and the lowest level since December. Meanwhile, businesses’ confidence in their own funding position was down -3pp from July and -9pp compared to February. Ahead of the Autumn Budget, there has also been a slight increase in businesses’ pessimism about the UK economic outlook. Charlotte Anderson (photo, right) partner and East of England practice leader, Grant Thornton UK, said: “The low levels of growth expectations are in line with what we’re seeing in the market. Whilst the economy has shown more resilience than many expected and we managed to avoid a recession, in recent months the government narrative has been increasingly pessimistic about the state of public finances and the spending gap, warming up businesses and the financial markets to the expected tax changes in the Budget. However, the downbeat tone has undoubtedly impacted business’ confidence around the economy and their own profits, which in turn hinders investment and growth.” She added: “As the government narrative changes post-Budget, focusing more on Invest 35 and the Industrial Strategy, which are designed to encourage investment and productivity, we expect to see business confidence rebound.”