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Business turnover across five key sectors peaked during the third quarter of 2011 for the first time since the start of the financial crisis four years ago, research finds.

The Business Factors Index, charting 3,500 businesses across manufacturing, construction, business services, wholesale and transport, rose to its highest quarterly average since it began in 2007, pointing to a significant surge in performance in the third quarter.
 
The quarterly figure of 105.3 was substantially higher than the previous peak of 101.1 at the end of 2007, and only the third time since its inception that the Index has risen above the 100 mark that represents the level of activity in July 2007.

The turnover increase echoes the latest GDP figures released on November 1st, which show the economy grew by 0.5 per cent over the same period.
 
Edward Rimmer, UK chief executive of Bibby Financial Services says, ‘The results from Q3 are a welcome shot in the arm for small and-medium-sized businesses as the first two quarters of this year had returned disappointing performance across the sectors.
 
‘The increase in activity we have seen serves to underline just how important the role of the small to medium-sized business is in rebooting the UK economy. If the performance we have seen in Q3 continues, or even improves, it can only have a positive impact on the wider economic picture and areas such as consumer confidence.’

Kate Sharp, chief executive of the Asset Based Finance Association adds, ‘Funding remains a key issue for small and medium-sized enterprises, so it is encouraging to see how many are preparing for a possible second downturn by investing in growth strategies, improving supply chain management and cutting costs.
 
‘But clearly confidence is still a factor and we need to ensure the encouraging performance during Q3 is not overshadowed by talking up the spectre of a double dip recession.’
 

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