27/08/2010
Despite a few hints at uncertainty, all signs of the economic recovery still seem to be pointing upwards, claim The Telegraph.
According to Richard Lambert, director-general of the Confederate of British Industry (CBI), there are a couple of factors which are causing little ripples of uncertainty when it comes to confidence in the economy. These include not knowing how the public sector squeeze will affect people's purses, the slight falter in the recovery seen in countries across the world, the expectation that this will be a slow and bumpy recovery, and quarterly GDP figures which are influenced by inventory cycles.
However, Mr Lambert said in The Telegraph that the underlying trend with the economy is "pointing gently upwards".
Business investment has started to pick up, he said, and the corporate sector has managed to build up financial surpluses over the past couple of years. "Sooner or later, the animal spirits will come to life again, with a real impact on growth," added Mr Lambert.
Perhaps now is an opportune time for businesses to make the most of opportunities that this economic recovery will bring. Start-ups and smaller businesses are often pretty swift to adapt and implement changes, but they might not have the cash flow to do so. Invoice factoring is one type of sales finance which is popular with such businesses, because they don't need a large amount of security to borrow against. In fact, invoice factoring simply injects a business with money by providing a cash advance for up to 90% of the value of invoices issued to clients.
When discussing the role the government will play when it announces the fiscal squeeze later this year, Mr Lambert said: "Above all, it needs to highlight the opportunities as well as the perils that lie ahead of the country."
"The last thing we want to do is talk ourselves back into the dumps," he said. "Confidence matters."
Laura Nineham