06/09/2010
Transatlantic business confidence looks set to grow with the news that manufacturing in America has expanded for its 13th consecutive month.
As reported by The Daily Mail, the news is calming fears that the U.S. could see a double-dip recovery, boosting Wall Street and rising the Dow Jones industrial average by 2.5%.
The news comes the same time as reports that Chinese manufacturing and auto sales have also grown. This has fuelled hopes that its consumption of exports will also increase, and help sustain the economic recovery of not just America, but other countries that export to the country.
The news could boost confidence in businesses who have been waiting to ensure the economy is on its way to recovery before expanding, launching a new product or selling to a new market. SMEs should remember that when it comes to commercial finance, there are other options instead of a traditional bank loan to fund such diversification. Invoice discounting is just one type of sales finance that releases cash from invoices sent to clients, giving a cash advance of up to 90% of the invoice value.
Jason Pride, director of investment strategy at an American investment firm, told Reuters:"We're in the middle of what is typically a growth scare, where the economic cycle slows down after an initial run up as stimulus faces and we transition from stimulus to having the economy standing on its own."
As reported by The Guardian, stock prices rallied in London on the back of the news.
Laura Nineham