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Economy moving from "flat to growth"

Ref: 171

Date: Mon 20/May/2013, 15:13

The UK economy is set to continue its growth, according to the CBI.

The business lobby group released its most recent economic forecast at the start of this week, which predicted we’ll see GDP growth of 1% this year and 2% growth in 2014.

However, like many economists, business bodies, journalists and experts warn whenever a glimmer of hope shines upon us, the CBI said that despite this optimism clear challenges remain both at home and abroad.

John Cridland, the director general at the CBI, said: “The UK economy is moving from flat to growth.

“Although recent data suggests rising business confidence, the economic climate remains tough, hampering demand here and overseas. Meanwhile, consumers remain under pressure, as inflation continues to outstrip wage growth.

“Now the government needs to pick up the baton and deliver on promises to get finance to firms, cut red tape and help us drive exports.”

It’s interesting that John Cridland mentioned the importance of getting finance to firms as a recent survey found that 17% of businesses were very concerned about managing cash flow effectively over the next 12 months, with a further 27% saying they were quite concerned.

46% of businesses also said they had been hit by at least one recent cash flow setback, such as late or failed payments from their customers.

If you’re struggling to maintain cash flow or are being hit by late payments, please contact us for more information on how we may be able to help.

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