Member Article

Confidence in recovery growing among NW businesses says report

The latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) has found that businesses in the North West are starting to feel the benefits of the burgeoning UK economic recovery.

Though confidence in the region has been on a general upward trend for the past two years, now standing at +24.6, it still remains below the UK national average of +31.7.

Businesses in the North West report strengthening financial performance across this year. Turnover rose over the past year by 4.9% following an upward trend over the past two quarters to reach the strongest growth since Q2 2008.

Growth in gross profits and sales volumes have also picked up to 3.2% and 4.0% respectively over the previous 12 months, up from just 0.9% and 2.7% in the same quarter a year ago.

Melanie Christie, ICAEW North West regional director, said: “This quarter’s report shows that the UK economic recovery is well underway. If it continues at this rate, the UK economy will be one of the fastest growing economies in the western world going into 2014.

“However we cannot be complacent and all of us need work hard to maintain the momentum built up this year while remaining alive to the threats to our recovery, especially those outside the UK.”

Companies in the North West are also confident about export prospects, expecting growth over the coming year of 5.3%. This compares to 3.2% growth recorded over the past year, and provides encouraging signs of an export-led recovery starting to appear with economic expansion coming from overseas trade rather than domestic consumer and government spending.

Kevin Engel, a partner at business advisors Grant Thornton LLP, said: “The buoyancy of the technology sector in recent months has been particularly notable. There is plenty of renewed interest in mergers and acquisitions and more banking appetite for technology assets.

“The fact the sector has been backed by an assortment of government initiatives, such as incentives for research and development and the ‘patent box’ is key. That help and support needs to be extended to other sectors around issues like funding to keep the momentum going.”

This was posted in Bdaily's Members' News section by Simon Malia .