Recession ‘will end within 3 months’

The UK recession will end within three months, according to a report issued by accountants BDO Stoy Hayward.

The accountancy firm believe that the prompt fiscal stimulus package and bank recapitalisation scheme taken in the UK have helped the economy speed ahead in the race towards recovery.

The BDO Output Index - which measures short-run turnover expectations and order book strength - recently saw largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July.

"The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the Eurozone back from a quicker recovery," said Alex White, Partner at BDO Stoy Hayward.

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Recession - the regional impact

The impacts on business are being felt on a local level in varying degrees and the study helps to provide a regional SME confidence barometer. Businesses in the East of England display the greatest concern for their long (and short) term survival but those in the Midlands, the South West and Scotland have the greatest confidence in their ability to survive the economic storm (around 45% have few or no concerns about long term survival). The global economic powerhouse of London could even lose its lustre as 28% of in the capital have real concerns over their survival chances.


One of the areas showing the greatest cause for concern is the East of England. While 66% of SMEs overall say that they expect profits to fall in the next six months, in the East the figure rises to 79%. 55% of those business fear they may not survive for another 12 months. But help is at hand should businesses be prepared to look for it. The East of England Development Agency’s takeITon campaign is aiming to raise awareness of the benefits of improved IT among businesses, providing them with a package of support measures that will help boost productivity and ensure their businesses are fit to ride out the storm.

“A strong infrastructure has the ability to drive business success. If we can encourage businesses across the region to adopt improved practices, they will reap the rewards in productivity and efficiency which, in turn, will benefit the economic prosperity of the region as a whole.”
Jan Pinkerton, Head of Business ICT and Intelligence at the East of England Development Agency

Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.

The full guide can be downloaded here: http://www.sme-guide.co.uk/

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