The financial outlook may be gloomy but investment for growth is back on the agenda for many companies in the South East over the next year, according to research issued today.

Yesterday, Bank of England Governor Mervyn King warned of "choppy" times ahead, a view supported by Kent Invicta Chamber of Commerce chief executive Jo James.

But more than half of bosses questioned by Clydesdale Bank, which has Financial Solutions centres in Maidstone and Tunbridge Wells, said they planned to re-invest at least six per cent of turnover back into their business.

The bank's latest business survey found that 52 per cent of those companies questioned across the region would commit the spending to areas such as recruiting staff, new equipment and premises.

More than a quarter of South East companies (28 per cent) plan to invest more than 10 per cent back into their business. But the same number said nothing had been earmarked for growth opportunities.

The survey also found that half of businesses had delayed either salary increases (51 per cent) or recruitment (50 per cent) in the past year because of the economic climate.

The areas most companies in the region believe will drive commercial growth include expansion of operations (42 per cent), followed by more staff (31 per cent) and new equipment and machinery (27 per cent).

Will Lindsay, Clydesdale Bank's regional director south, said: "From the research it is clear businesses are telling us that their investment and capital expenditure plans remain uncertain over the next 12 months.

"The decision of when and how much cash to invest back into a business is very important.

"These results indicate that the majority of businesses are planning a relatively conservative spend in the next 12 months.

"However, with growing confidence in 52 per cent of businesses, the time may well be right for them to invest for growth and pursue quality growth opportunities from bringing new products to market to pursuing potentially lucrative contracts."