It’s not so much ‘April showers’ but pouring rain this month – literally for large parts of the country, and metaphorically for the economy, growth and business confidence
The avoidance of recession and return of business confidence were key takeaways from last month’s Budget, but the IMF’s forecast of UK GDP this month seems to dampen that again.
We were quickly urged to discount the IMF’s forecast as being too pessimistic as it had been on previous occasions – this chorus led by the Chancellor, Jeremy Hunt, who commented that the UK would do “significantly better”.
But this flip-flop of news, statistics and expert forecasting is what weighs heavy on business confidence – and it is why the way forward does not look like a straight line to business owners.
Some sectors face a steeper slope to support and growth – but you have to read beyond the headlines in April’s release from the Office for National Statistics (ONS) to realise that things may not be as bad broadly as the headlines sound.
But in this age of consuming headlines and snippets of information as we scroll, does the underlying story get enough airtime?
Lifting the lid on the ONS’ release of GDP for February reveals why the headline rate may have undershot experts’ expectations – public sector saw steep contraction due to the unprecedented level of industrial action, and if you can remember the weather back in February – it was unseasonably warm, which contracted energy and fuel providers’ performance.
On the flip side, output in the private sector rose, Construction and Retail strongly rebounded from the previous release and in-person services also grew – bottom line, the private sector performed better than the negative IMF forecasts would want you to believe.
If business owners can stick up their umbrella and keep off the headlines as they pour down, then do we stand of business confidence still being on the rise, even if not in a straight line?
Many of our client conversations are based on growth opportunities and the means to do business: “With the capital to source the materials and hire to fulfil this business opportunity, then we know there will be plenty more to come behind it.”
“We have the money, but it’s never in the right place at the right time. If we could smooth out our cash flow then our overheads and costs would not always be well in advance of our income.”
Proactive businesses will give themselves a chance to grow, and we see that as a continuing theme in 2023. Like business confidence, proactivity is a state of mind, and many of our clients have the confidence in their business moving forward to put in place the means to do business and grow.
We understand that the way forward isn’t a straight line – but we are here to support whatever is around the corner next for your business with suitable business finance options.
Let us help finance your business while you get on with running it.
