economic recovery

Manufacturing Slump Won’t Affect Economic Recovery

Manufacturing Slump Won’t Affect Economic Recovery 12th November 2010 A recent fall in manufacturing output is just a “hiccup” and won’t affect the UK economy’s continued recovery, economists have said. Figures from the Office for National Statistics (ONS) revealed that growth in manufacturing output slowed to 0.1% in September, from 0.4% in August. However, business groups have said that the manufacturing sector continues to play a key role in economic recovery as the service sector struggles. British Chambers of Commerce (BCC) chief economist, David Kern, said: “The manufacturing figures might have been low because we had two very strong figures in the previous quarters. If you focus on a single disappointing figure, you can come up with any number of reasons for the dr... »

ICAEW Priorities for Economic Recovery Budget

The ICAEW has today urged the Chancellor to ensure his next week’s Budget is focussed on building a stronger recovery. The call comes as recent exports and inflation data has contributed to fears of a double dip recession and as economic growth remains fragile. The ICAEW has said that the Chancellor should: Make no major tax changes for businesses The Budget should not add to the regulatory burden for companies. The change in the VAT rate in the 2008 Pre-Budget Report caused implementation headaches for many small businesses at a time when they least needed it. The changes then had to be reverted a year later. The ICAEW wants no further complexity to be made to the tax system, when it is already over complicated. Timelines confirmed for government schemes to help businesses plan As c... »

Cash Reserves Essential in Slow Economic Recovery

The British Chambers of Commerce (BCC) has urged small businesses to maintain their cash reserves, as economic recovery may take longer than expected. The BCC’s chief economist, David Kern, said that the economy is recovering but growth is likely to be “patchy” so businesses need to be cautious and not overspend. “They need to have enough cash to withstand knockbacks,” he said. “Essentially, there is going to be a recovery in 2010, but it is not going to be strong initially. Businesses have been very resilient in this recession and that’s because they have done all the right things — for example, conserving cash.” “There are many pitfalls ahead which all point to the need for great caution. Businesses should not move to a position... »

Economic Recovery Will be Faster than Expected

Economic Recovery Will be Faster than Expected

The UK economy will make a faster recovery than expected in 2010 and grow by almost twice the rate that was predicted in June, the British Chambers of Commerce (BCC) has forecast. The business group has revised its June forecast that the UK economy would only grow by 0.6 per cent next year, and predicted that GDP will increase by 1.1 per cent in 2010. This is compared to a predicted decline of 4.3 per cent in 2009. According to the BCC, Government initiatives and quantitative easing (pumping money into the economy to help its revival) are helping to contribute to a more rapid recovery. “We expect the economy to make a faster return to growth than we originally thought,” said BCC spokesman, Sam Turvey. However, Turvey added that the pace of recovery is likely to be slow by the U... »

Small Businesses Plan to Expand This Year

Small Businesses Plan to Expand This Year

Almost half of small firms are planning to capitalise on the economic recovery and expand in the next 12 months, according to research from Barclays. The survey of 3,675 small firms found that 49 per cent are planning to expand over the next year, while 34 per cent plan to consolidate their position. “A large number of small businesses are poised to expand when the time is right, perhaps taking advantage of any upturn in the economy,” said Barclays Local Business managing director, Steve Cooper. “While firms should be cautious about expansion in the current economic climate, the recession could present opportunities as other businesses downsize or disappear. “Any decisions to expand should be carefully considered, but there are good reasons to expand at the right ti... »