FOR the first time in nearly two years independent companies around the country believe the business climate is more favourable to starting a new venture, according to the latest 3i UK Enterprise Barometer, measuring general business environment. Firms in the North report the biggest leap in sentiment, while firms in the South are slightly less optimistic although still more confident than companies in the Midlands.

Director for 3i Southampton Clive Moody said: "The UK economy continues to look healthier and it is encouraging to see a further improvement in business confidence levels.''

Confidence levels among UK private companies continue to rise with the 3i UK Barometer Index now 48 points ahead, a rise of 22 points since the last quarter and 146 points since quarter one 1999. This is the third successive increase, suggesting that 3i-backed companies are seeing real improvements in the economy.

Similarly the balance of UK 3i-backed companies in the South reporting an improvement in the climate for expanding existing business activity has also risen.

One area which has noted a fall since the last quarter is the balance towards growth through acquisition by companies in the South.

Some commentators are suggesting that year 2000 concerns are discouraging acquisitions until the advent of the new millennium when compliance issues will be resolved.

Non-manufacturing companies remain more upbeat than manufacturers, although both sectors have shown improvements since the last quarter.

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