While fingers are crossed that the UK avoids a triple dip recession, figures are pointing to stagnation in the final quarter of 2012, according to the British Chamber of Commerce (BCC) and the latest figures. This is not making it any more likely that we will see significant growth in 2013.
The Office for National Statistics revealed these disappointing figures. Industrial output grew by just 0.3% in November compared to the previous month’s figures. This was less than expected. What’s more, the output of the construction sector contracted 3.4% during November. The poor performance of the construction sector has been dragging UK figures down throughout 2012, and it doesn’t look like posting growth figures any time soon.
David Kern, Chief Economist of the BCC, said: “The manufacturing figures were disappointing, showing a small fall while most analysts predicted an increase. The small rise in total production was also weaker than expected, and the decline in the volatile construction sector is concerning. Taken together, the figures will reinforce the concern that the ONS will announce later this month a small decline in GDP, and this could be damaging to business confidence.”
This all paints a picture of a stagnating UK economy moving into 2013. However, manufacturing remains a significant part of the economy, and it has coped well with the challenges of the past few years, all things considered. Weak growth in world trade may limit the scope of expansion in exports, but the sector is still a big contributor to the economy and one that needs to recover.
Having access to finance is a big part of being able to achieve growth. With traditional finance options often out of reach, it’s important to consider alternative finance measures as well as bank loans and overdrafts. Asset based finance is one example, that can help unlock capital and keep your cash flow healthy.