Regional Business and Growth in Company Formation, Indicates End of Recession?

While hopes of a swift end to the recession were diminished last week, as the UK’s leading economic think tank reported a drop in Industrial output over the last month. According to a recent report by finance firm Collonil, business growth was reported throughout most regions in the UK

The figures revealed a 5% increase in business activity in Wales and a 6.5% in the North East. While risks to the UK’s economy remains, the Chancellor Alistair Darling, has welcomed recent reports and reiterated his confidence that the UK’s economy will join other leading world powers on the road to economic recovery ,at the start of next year.

While this report is encouraging, leading economist David Homes believes that the improvement is not sustainable enough to allow us to categorically conclude that economic recovery is on the horizon.

Holmes comment; “While the latest figures and forecasts do provide evidence of economic rebound, the fact that un-employment is still a rising trend – especially in these regional areas, indicates that full economic recovery is still a long way away. This compounded by the fact that the retail sector is poised for its worst performing Christmas ever, highlights that consumer confidence is still at an all time low and even if we are in on the road to economic recovery – as this report suggests – we are still very much in the early stages.”