"Financing projects from £50,000 to £100 million"

Businesses encouraged by improving performance

Businesses encouraged by improving performance

More small businesses are optimistic about their prospects going forward, according to a new index.

The Business Factors Index by independent financier Bibby Financial Services shows a considerable improvement in performance across all sectors, including manufacturing and construction.

The improvement in performance registered by the index’s client base of 4,000 SMEs in the second quarter could result in the strongest half-year performance since the index began in 2007.

The upturn in performance has been helped by Government efforts to boost the housing market. Schemes such as Help to Buy have caused a surge in demand for new homes, with residual benefits for related small businesses.

Meanwhile, the Office of National Statistics (ONS) now believes that compensation payments resulting from mis-sold PPI insurance have boosted spending and provided an unexpected catalyst to economic recovery.

Firms appear to be suitably encouraged by the upturn in performance. The index showed an improved sentiment among firms, with six in ten companies reporting an improved level on confidence from the previous index.

Around 20% of firms now believe that the economy will have achieved a full recovery by the end of the Coalition’s term in 2015.

David Postings, the chief executive of Bibby Financial Services, said that businesses "were not out of the woods" but there was plenty of reason for encouragement.

"On the face of it, the first two quarters of the year have delivered some positivity, but we do need to sound a note of caution as there is still a long way to go," he said.

"In line with wider economic activity, we have seen positive performances from SMEs across all five sectors during the first half of the year.

"Many firms still struggle with issues such as the costs of running a business and maintaining working capital, so against this backdrop it is encouraging to see the kind of results we have in Q2."

Monday, 19 August 2013 11:59
Bookmark and Share

Make a comment on this article

Comment
Please enter the following letters in the box below.
We're very sorry for this but we just need to ensure
that you are not a computer.