Confidence among business professional has risen into positive territory for the first time in two years, according to the latest Institute of Chartered Accountants (ICAEW) UK Business Confidence Monitor.
The ICAEW have revealed that confidence has risen from -28.2 in the second quarter of the year to +4.8 in this quarter - the highest figure since the third quarter of 2007.
This rise in confidence has been attributed to quantitative easing, the fall in interest rates and businesses in the UK having cut all unnecessary expenditure.
"While there is no doubt that the UK economy is on its way to recovery, we shouldn't underestimate the challenges ahead for businesses," said Michael Izza, chief executive of the ICAEW.
www.ukba.co.uk
Showing posts with label ecomomy. Show all posts
Showing posts with label ecomomy. Show all posts
Wednesday, 23 September 2009
Friday, 24 July 2009
New research suggests the recession has levelled out for small businesses
Small businesses are now more optimistic about their immediate sales prospects, according to the latest Quarterly Survey of Small Business in Britain by The Open University Business School in association with Barclays Bank and ACCA. While 49% of small firms reported that sales were down over the year, most notably in manufacturing and construction, fewer firms now expect to cut employment, and 62% of small firms have not changed employment levels over this past year.
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Thursday, 25 June 2009
The worst of the recession is behind us and the economy is now stabilising, the CBI has claimed.
However, the business group said the UK will not return to growth until the beginning of next year.
The prediction comes hot on the heels of last week’s claim by the National Institute of Economic and Social Research (NIESR) that the economy actually grew in April and May.
According to CBI predications, GDP will flatten out during the second half of this year, with figures of -0.1% and 0% in the third and fourth quarters of the year.
Richard Lambert, CBI director general said: “The world recession has deepened, so it is not surprising that the UK economy has continued to suffer. However, the harshest period of the recession looks to be behind us, the economy is stabilising and this should continue during the second half of this year.
“The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour. For positive growth to return, lenders need to feel more confident so that credit can start flowing again.”
Lambert warned against getting ‘carried away’ by indicators of recovery, insisting it would take some time before any green shoots had a real impact.
The group estimates that the UK economy will have shrunk by a total of 4.8% by the end of the recession.
Source: © Crimson Business Ltd. 2009
www.ukba.co.uk
The prediction comes hot on the heels of last week’s claim by the National Institute of Economic and Social Research (NIESR) that the economy actually grew in April and May.
According to CBI predications, GDP will flatten out during the second half of this year, with figures of -0.1% and 0% in the third and fourth quarters of the year.
Richard Lambert, CBI director general said: “The world recession has deepened, so it is not surprising that the UK economy has continued to suffer. However, the harshest period of the recession looks to be behind us, the economy is stabilising and this should continue during the second half of this year.
“The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour. For positive growth to return, lenders need to feel more confident so that credit can start flowing again.”
Lambert warned against getting ‘carried away’ by indicators of recovery, insisting it would take some time before any green shoots had a real impact.
The group estimates that the UK economy will have shrunk by a total of 4.8% by the end of the recession.
Source: © Crimson Business Ltd. 2009
www.ukba.co.uk
Sunday, 21 June 2009
The UK experienced its first growth in industrial output for more than a year in April
The economy grew by 0.1% in May and 0.2% in April after contracting 0.5% in March. The NIESR also reported that the output of the UK economy has fallen by 5% between the beginning of the recession in May 2008 and March this year.
Martin Weale, director of NIESR said that the recession had ended "as far as I can tell." He added, "There has been much less downward momentum than we expected."
Source: official figures released by the National Institute for Economic and Social Research (NIESR).
www.ukba.co.uk
Martin Weale, director of NIESR said that the recession had ended "as far as I can tell." He added, "There has been much less downward momentum than we expected."
Source: official figures released by the National Institute for Economic and Social Research (NIESR).
www.ukba.co.uk
Tuesday, 3 March 2009
Recession Insights - Winning Behaviour
It is not just lack of investment in technology that characterises under performance in SMEs. Our research found that SMEs are also more likely to have reduced rather than increased training budgets over the past 12 months (37% have reduced training budgets compared to 24% who have increased them).
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Tuesday, 10 February 2009
Will Interest Rate Cut Support Small Business?
FSB warns that a further interest rate cut will not work
The Federation of Small Businesses (FSB) is calling for the Bank of England (BoE) to hold fire on any further interest rate cuts ahead of the Monetary Policy Committee's decision on Thursday (5 February 2009).
Figures from a survey of over 4,000 small businesses show that the recent rate cuts have not provided the boost to the economy that many hoped for.
According to the poll almost two thirds (63 per cent) want the BoE to keep rates at their current level of 1.5 per cent. Only a quarter (24 per cent) said they would like a rate decrease – down from 58 per cent who called for a rate cut in a similar survey conducted in December 2008.
This indicates small businesses are not feeling the impact of the interest rate cuts and that access to finance, rather than the cost, remains a key problem.
John Wright, FSB National Chairman, said:
"These figures suggest that the recent interest rate cuts are not having the desired effect and other means of economic stimulus are required.
"Small businesses are clearly worried that this monetary policy has been used extensively over the last few months yet they are still struggling to access cheaper finance.
"The concern now is that if rates are cut any further there may not be too much more room for manoeuvre in the economy. The onus is really on the banks to start promoting these lower rates to fire up the economy."
David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"British business is not surprised by the MPC’s decision today. With the recession worsening, and deflation a distinct risk, there is still scope for further interest rate cuts in the next few months, to almost zero.
“But, with rates at very low levels already, the focus of UK monetary policy must now inevitably shift towards forceful quantitative and credit easing measures, with the aim of increasing the money supply and removing blockages in the credit markets.
“Given the Bank’s unduly cautious record in the early stages of the credit crisis, UK businesses must be reassured that the Bank will be prepared to implement unconventional techniques. This is vital in order to alleviate the recession, counter threats of deflation, and underpin falling confidence.”
The Federation of Small Businesses (FSB) is calling for the Bank of England (BoE) to hold fire on any further interest rate cuts ahead of the Monetary Policy Committee's decision on Thursday (5 February 2009).
Figures from a survey of over 4,000 small businesses show that the recent rate cuts have not provided the boost to the economy that many hoped for.
According to the poll almost two thirds (63 per cent) want the BoE to keep rates at their current level of 1.5 per cent. Only a quarter (24 per cent) said they would like a rate decrease – down from 58 per cent who called for a rate cut in a similar survey conducted in December 2008.
This indicates small businesses are not feeling the impact of the interest rate cuts and that access to finance, rather than the cost, remains a key problem.
John Wright, FSB National Chairman, said:
"These figures suggest that the recent interest rate cuts are not having the desired effect and other means of economic stimulus are required.
"Small businesses are clearly worried that this monetary policy has been used extensively over the last few months yet they are still struggling to access cheaper finance.
"The concern now is that if rates are cut any further there may not be too much more room for manoeuvre in the economy. The onus is really on the banks to start promoting these lower rates to fire up the economy."
David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"British business is not surprised by the MPC’s decision today. With the recession worsening, and deflation a distinct risk, there is still scope for further interest rate cuts in the next few months, to almost zero.
“But, with rates at very low levels already, the focus of UK monetary policy must now inevitably shift towards forceful quantitative and credit easing measures, with the aim of increasing the money supply and removing blockages in the credit markets.
“Given the Bank’s unduly cautious record in the early stages of the credit crisis, UK businesses must be reassured that the Bank will be prepared to implement unconventional techniques. This is vital in order to alleviate the recession, counter threats of deflation, and underpin falling confidence.”
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