The UK GDP is up, unemployment is down, and the headlines in the “Finance” section are actually positive, instead of resembling epithets from an obituary, for the first time in 6 years. Although most people aren't seeing a massive change in their everyday lives, UK businesses are on the precipice of a boom.
It seems not a week goes by without the news reporting the economic upturn, but what, if any, relationship to the truth do these stories have? More importantly, how do these stories impact the UK’s populace and businesses in a practical sense?
Although a slew of numbers can often do more to obfuscate than clarify, it’s useful to note theseassertions from the OECD;
- The British economy will grow faster than any of the other G7 nations this year
- GDP is set to rise steadily over the next 2 years at 0.6% per quarter
- The economy should be back to pre-crisis size by July 2014
- The economy should expand by 2.7% this year, higher than Eurozone’s predicted 1.1%
It’s against this positive outlook that UK manufacturing continues to rise month by month, and that unemployment has dropped by 125,000 in three months.
It’s not all roses, however. Despite the allure to whitewash these reports as saying “all is well!”, living standards have yet to bounce back whatsoever from the economic crisis. The Fabian Society, for instance, suggest that the typical measures of growth, inflation and unemployment, are “totally inadequate.” They suggest 20 new indicators, such as “National Debt”, “Household Incomes” and “Income Equality” as the true test of economic strength.
They make a compelling argument. When these factors are taken into account, the UK hasn’t done much in the way of increasing the lot of its citizens.
Meanwhile, businesses are most definitely seeing the benefits of an expanding economy, as demonstrated by the continuingly falling unemployment figures. The manufacturing and print industries are typically leading the charge, but across the board there’s an increase in investment. The construction industry was hit in February by the bad weather, but the massive floods had an unexpected side-effect of creation a large number of new jobs.
It’s certainly not the banks or the politicians pulling the UK out of the recession: it’s the hard work of industry, of businesses and of skilled jobs. It’s the growth of SMEs at this critical period that will also lend benefit to a number of the alternative 20 economic indicators suggested by the Fabian Society.
Businesses are finding an increase in revenue and market activity, and it’s important for them to grow alongside the economy or risk losing their market share. Now is the time to buy, to invest in new equipment and keep up to date, yet cash flow limitations continue to be an important consideration. Sadly, the UK highstreet banks continue their reluctance to lend to SMEs, and as such there’s a real lack of funding in sectors that are in the perfect position to expand.
Which is naturally where Clear come in. We’ll find the funding for the assets you need for your business. Asset finance is an important source of funding, one that is key for expanding businesses in the current climate.
Clear would love to help facilitate your business’ financial needs in this growing economy. For more information, give us a call on 01277 239932, or drop us a line at firstname.lastname@example.org.