An industry procurement survey has forecast C&I budgets are set to rise by mid-2011.
The cautious optimism was revealed in a survey of 369 UK procurement professionals carried out by independent market research body Opinium and commissioned by Macdonald Hotels and Confex in January.
Some 40% of procurement officers believe budgets will grow in the next 18 months, with 25% believing budgets will rise in the next year, the study revealed.
Confex Group portfolio director Duncan Reid said: "The fact that those in charge of purchasing decisions for their company are predicting a stabilisation period in the next 12-24 months can only be good news for the industry."
In terms of what affected purchasing decisions, top factors were budget and location, with CSR at the bottom of the list.
However, CSR was rated the second least influential of seven factors affecting purchasing decisions.
Top factors were budget and location, voted important or very important by 83% and 81% respectively.
Factors influencing procurement decisions:
- Budget - 83%
- Location - 81%
- Travel cost - 75%
- Value of supplier relationships - 64%
- Length of planning time - 63%
- CSR policy - 53%
- Last minute offerings and incentives - 44%