The economic cogs are still turning

The British Chambers of Commerce (BCC) recently  published its Quarterly Economic Survey. Over 5000 businesses responded, indicating that the UK economy grew at a subdued rate in the second quarter of 2017. 

Some key findings of the report are:

• Manufacturers report continued pressure from the price of raw materials, with 60% reporting this as the cause of price increases (down from 76%). Pressure from financial costs also rose in both, rising from 12% to 15% in manufacturing and 9% to 13% in services.
• In the manufacturing sector, the balance of firms reporting increasing domestic sales held steady whilst export sales rose marginally to 27%.
• In services, the balance of firms reporting increasing domestic sales fell from +22 to +19% and domestic orders fell from +19 to +15%. The balance reporting increasing export sales rose from +10 to +13% and export orders also rose from +5 to +9%.

• The balance of firms in both sectors reporting improved cashflow remains at historical lows, with +3% in manufacturing and +8% in services.  

Suren Thiru, Head of Economics at the BCC, said

"Rising inflation remains the key challenge for the UK economy this year. Consumer prices are likely to keep rising in the coming months as the recent sizeable increases in the cost of raw materials and other overheads filter through supply chains"


If you’d like to find out more about alternative business finance facilities to help manage the costs of raw materials and cashflow, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities work.