Partner and R3 North West Chair Jeremy Oddie warns against complacency in light of Chancellor's optimism for Economic Recovery

More than half of all Northern businesses disagree with the Chancellor’s statement that the economy has moved “from rescue to recovery”, according to the latest Business Distress Index from insolvency trade body R3.

Some 56% of those polled disagreed that the economy was now in recovery mode while just 33% agreed.

Mitchell Charlesworth’s Head of Recoveries and R3’s North West regional chair Jeremy Oddie said:

Jeremy Oddie
Mitchell Charlesworth Head
of Recoveries & R3's North
West Regional Chair
Jeremy Oddie

“Despite the positive economic news, many businesses - small businesses in particular - still feel they have some way to go.

“Now is not the time for complacency. One of the most dangerous times for a business is immediately after a recession, when a lack of investment as a result of cutbacks and the stress of servicing growing demand take their toll.

“While it might look like economic recovery is taking place, it may not feel that way for businesses on the frontline just yet.”

But the index also shows some positive signs of growth.

Some 69% of businesses said they were showing no signs of distress whatsoever – up from 67% in March this year and 38% in June 2012.

And 60% of firms reported at least one sign of growth – either investing in new equipment, business expansion, increased sales, increased market share, increased profits. That is down from 80% in June 2012.

Mr Oddie said: “The falling levels of business distress are very encouraging, although we would still like to see further business growth. Growth indicators may be higher than they were earlier this year, but they are actually lower than they were a year ago.

“If economic growth is to be sustained, we will need to see improvement in the growth indicators in the coming months.”

This press release was originally found on Liverpool Daily Post and the article can be found here.

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