Industrial growth in the UK indicates an improvement in the economic outlook.

The National Institute of Economic and Social research said that industrial production increased in December faster than had been expected. Previously the last quarter’s growth rate for the economy was said to be .1%. It is now believed that it increased by .2%.

In the last quarter of 2009, factory, mine, and oil and gas production increased by .4% according to the Office of National Statistics, compared to .1% which they had said in January was the improvement.

The effect of heavy snow falls may have a disruptive effect on this quarter’s economic results and also the VAT rate was returned to 17.5%.

Production from industry provides approximately 17% of the UK GDP. In the economic recession, output fell to 15%, however many countries experienced falls of 25%.

German industrial production has increased 5% from its recent low point and, in the UK there are other reports of improvement in manufacturing. For example the purchasing managers’ index is the highest it has been for 15 years.

There’s a glint of sunshine in the improved industrial production figures and we also help by sending UK businesses qualified prospects at no cost to them from our Local Search facility in our Business Directory.



Monte Huebsch, CEO

 

UK Small businesses are using alternative financing methods.

Bank lending to businesses increased in November 2009, which was the first increase since January 2009. However, small businesses are looking outside traditional bank loans for finance, due to the fact that the banks are currently less than accommodating.

A survey by Bibby Financial Services reported that 40% of small businesses said that obtaining finance was critical for them and that 74% of them found that tighter bank loan approval requirements had made it substantially harder to borrow.

Factoring and invoice discounting is filling the funding gap for small firms. The Asset Based Finance Association reports that funding to UK firms in the third quarter of 2009 was £46,667 million, an increase of 4% on the previous quarter.

Invoice finance offers a number of benefits for small firms:

The facility is more flexible than a normal bank loan or overdraft.

The funds are available as soon as the client is invoiced.

There is less time spent on managing credit and in debt collection.

Cash flow is improved.

And, many of the factoring lenders provide bad debt protection.

Small UK firms need all the assistance they can get, since they will provide the jobs to lower the current high unemployment rate.

We help them by providing qualified prospects at no cost to them from our Local Search facility in our UK Business Directory. Most of the 1.6 million businesses listed are small firms.



Monte Huebsch, CEO

85% of UK small businesses say they will expand their business in 2010.

In a recent survey of 530 UK small businesses, Peopleperhour.com reported that the recession had a negative effect on only 25% of them. 33% said that the economic downturn produced a benefit since it had forced them to use technology and the internet to lower their business costs.

Another survey, by the Investec Entrepreneur Confidence Index, confirmed these results, showing that 90% of small firms say their revenue will increase in 2010. That study also reported that two thirds expect the economy to get better in 2010, 83% say the economy will not decline, 72% think that this year will be good for them and 46% intend to spend on new technology. 

UK business confidence is at a six year high. 

The UK economy grew by .1% in the last quarter of 2010, which means that the recession is formally over, but the GDP growth figure was less than what had been expected. There had been six consecutive quarters of negative growth previously, the longest negative period since the inception of the records in 1955. 

Accessing finance is still a problem for small firms. A survey by Graydon UK reported that in the last 6 months of last year, 40% of small business finance applications were refused, 52% had business loans rejected and 28% of overdraft extensions were refused. 28% borrowed from family or friends and 8% used personal credit cards for business purposes. 

So the positive spirit of small UK businesses has not been blunted and since the small firms will be the main vehicle for hiring new staff, that is important. 

We help by sending qualified prospects to them from our Local Search facility on our UK Business Directory at no cost to them. Most of the 1.6 million firms listed are small businesses.

 

Monte Huebsch, CEO.