Revenues up among small businesses
May 11 2011
Business turnover reached its highest monthly point in four years
Business turnover reached its highest monthly point in four years, according to research.
The latest Business Factors Index from Bibby Financial Services, which tracks the quarterly performance of 3,000 small and medium sized enterprises, rose to 111.2, the highest monthly reading since the Index began in August 2007 and surpassing the previous October 2007 high point of 109.4.
The increase in revenues in March contrasts sharply with figures in January when the Index fell to 83.5, the lowest point for 12 months, due to the seasonal slowdown combined with another severe winter affecting trade.
Year-on-year, the Index is up by 4.7 points on March 2010.
The best performing sector was manufacturing, with business services continuing to show the poorest results.
Construction has seen renewed strength and growth in this quarter with the Index reaching 119.3 for March, up 46.6 points on its low start to the year in January of 72.7.
In a separate study of 300 small businesses conducted by Bibby Financial Services as part of the Index report, 61 per cent of UK businesses report that the first quarter has been a steady period or they are hopeful for the future of their business moving forward, which is up on the previous quarter by 3 per cent and up from 53 per cent year on year.
UK chief executive at Bibby Financial Services Edward Rimmer says, ‘The findings of the latest Business Factors Index reflect a mood of cautious optimism, which can also be seen in the latest ONS figures for GDP. Pockets of growth and great success stories sit alongside some businesses that are still coping with the long-term effects of the downturn.
‘While it is clear we are still a long way from returning to sustained growth and a full recovery, there is a genuine sense that the economy is turning a corner.’
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