SOUTH-WEST firms hope to step up recruitment in the next 12 months as the economy improves, according to new figures.

The news comes following the latest quarterly ICAEW UK Business Confidence Monitor.

This contrasts with 2009 when, for most of the year, local business professionals were predicting job losses for the first time, and employment reportedly fell by 1.7%.

The ICAEW survey is in line with official figures showing that the number of jobless in the region has been falling since last September.

Pay is expected to improve with average total salaries growing by 1.2% after a year of no increase, and there will be a small increase in staff development budgets as well.

“Hopefully, the tide has begun to turn for the region’s jobless,” said Jon Blake, ICAEW South-West regional director.

South-West firms are tentatively optimistic about the coming 12 months. They expect turnover to rise by just over 4%, having fallen by 0.6% in the past 12 months. Gross profits are expected to rise by 3.7%, after a fall of 0.7% and sales are expected to be up by more than 4%. Exports are predicted to grow by 3%, having suffered the first fall ever recorded by BCM last year.

Fewer firms think that access to finance is worse than a year ago. One in five say it is a problem, compared to one in three in the third quarter of 2009. This is reflected in an easing of cash flow concerns. One in three businesses say late payment from customers is a growing problem, compared to almost half (43%) in the worst period of the financial crisis at the beginning of last year.