No recession in spite of business confidence falling
The business confidence monitor (BCM) from the Institute of Chartered Accountants of England and Wales, (ICAEW), has fallen to its lowest level since 2003. It is the institute’s view that the economy will escape recession whilst warning of a difficult year ahead.
The BCM moved from -3.9 to -7.9 in the last quarter compared to a cyclical peak of +11.5 in Q2 of 2007. It showed the banking finance and insurance with the largest drop, property staying low, IT falling some 17.5 points, whilst on the positive side, confidence in the manufacturing and engineering sector rising from -2.6
Michael Izza, Chief Executive of the ICAEW, said: "There is no doubt that 2008 will be a tough year for a number of companies. Although business confidence is low there are a number of practical things businesses can do, no matter what size they are, to help ensure they get through this period of uncertainty. These include maximising cash flow by tighter control of working capital, stock and debtors; looking critically at capital expenditure; stringent control of overheads as well as improving gross margins wherever possible. The businesses that can do these things quickly will be better able to steer a path through the difficult times ahead."
Financials with its experience in business of achieving these sort of practical things can help you decide the most appropriate steps to take and help you accomplish them For instance we helped a client substantially reduce their debtor levels.
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