Midlands businesses are bucking the national trend when it comes to economic optimism, according to the latest Business Distress Index from R3, the insolvency trade body.
With 49 per cent of businesses nationally disputing Chancellor George Osborne’s claim that the economy had moved ‘from rescue to recovery’, only two in five (40 per cent) in the region opposed his views.
R3’s Midlands region chairman Richard Philpott, a partner at the Birmingham office of KPMG, said: “It’s important that we don’t forget that a lot of businesses still have significant hurdles to overcome.
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“One of the most dangerous times for businesses is immediately after a recession when they face a lack of investment and the stress of meeting increased demand. While it might feel like economic recovery is taking place, there still needs to be a strong element of caution.”
Further statistics from R3’s Business Distress Index find the Midlands business community in increasingly robust shape.
Over two thirds (68 per cent) of the region’s businesses reported no sign of distress – such as a fall in profits, market share or sales volume – which is a significant rise from 46 per cent in March.
At the same time, almost half (49 per cent) of businesses in the region are recording at least one sign of growth, which includes investment in new equipment, business expansion, increased sales, growing market share and larger profits.
R3’s report also revealed that the picture is rosier for larger businesses with annual turnover in excess of £1 million Nationally, almost three quarters of large businesses reported at least one sign of growth.