Official figures have now confirmed that the UK’s economy has grown 0.3% in the first three months of the year, with the Office for Naitonal Statistic’s data backing up the initial estimates given back in April. This confirms that the UK’s economy has avoided the triple dip recession, and suggests that there are signs of real recovery – however, there’s still a long way to go.
The growth figure has remained the same since April predictions, meaning that the government has not lost face in terms of delivering on economic growth. The confirmation that the economy is starting to grow again will serve to strengthen George Osbourne’s resolve towards his programme of austerity. This was always plan number one even when the numbers weren’t there to back him up during tough times, and so now the economy is looking healthier and the IMF only giving a minor warning, the chances of a change of course have diminished significantly.
However, although the weakened pound has helped export prospects for many businesses, domestic demand has failed to pick up and many companies are struggling. While this recorded growth is definitely a step in the right direction, there’s no guarantee that the growth will continue sustainably or accelerate.
As such, it’s still important for businesses to remain vigilant and on top of their finances. While there might be cause for optimism, there’s also cause for pro-active exploration of growth opportunities and funding options. Invoice finance is one of these options – more and more businesses are starting to take advantage of factoring and invoice discounting as a way of managing cash flow, turning short term gain into long term growth.