Businesses in the South West are the most optimistic about the prospects for economic recovery, according to the latest Bibby Financial Services’ Business Factors Index.
Some 57 per cent of firms in the region state that conditions are “ok” and that they are hopeful for the future, with an additional nine per cent stating that they are doing well, having in some cases benefited from the recession. Indeed, almost a third (30 per cent) feel that the UK economy will start showing signs of real recovery within a year, despite a 0.5 per cent dip in GDP during Q4 2010.
The Index is a quarterly report that tracks the turnover levels among Bibby Financial Services 3,800 strong client base. The trends derived from this data, which goes back to July 2007, have been collated alongside the results of a series of interviews conducted with 300 business owners, from a range of businesses across the UK, to produce a comprehensive overview of how UK firms are faring in the current climate.
While other regions have seen business confidence dip in the face of harsh weather conditions and further cuts in public sector spending following October’s Comprehensive Spending Review, firms in the South West seem to have bucked the trend. The findings from the Index reflect the ICAEW/Grant Thornton UK Business Confidence Monitor (BCM), which shows that annual growth rates of business turnover, profit and export performance for South West firms all rose in the final quarter compared to Q3.
When speaking to small business owners and managers in the South West the Index also reveals:
- Almost half (43 per cent) feel conditions have stabilised when compared with the same point a year ago
- Almost three quarters (74 per cent) have seen lapsed customers returning
- Over half (59 per cent) have been managing debt more stringently
Terry Wolfendale, Bibby Financial Services spokesperson for the South West, said: “The last quarter has seen the outlook of small businesses in the South West improve, with firms in the region demonstrating a degree of optimism. Trading conditions have certainly stablilised over the past quarter and as a result, confidence is on the rise. The fact that 44 per cent of businesses in the region have seen an increase in new customers is evidence of this.
“The government and the finance industry both have a role to play in supporting firms in the region in order to ensure that this upward trend continues throughout the remainder of 2011. It’s no secret that access to finance remains of key concern to business owners and managers throughout the South West. Bibby Financial Services will continue to support the region’s businesses by providing invoice finance solutions, helping them to alleviate cash flow worries with a reliable source of finance.”
The Business Factor Index is issued by Bibby Financial Services and is available online at www.bibbyfinancialservices.com
