Positive start to the year pushes up confidence

BRITISH firms have enjoyed the best few months for sales since the start of the economic downturn in 2007, a study out today has suggested.

Bibby Financial Services, which examined the turnover of 4,000 businesses, also found a more positive outlook for this year amid renewed confidence and increasing numbers of customers.

The invoice finance specialist has been charting the performance of its client base across key industry sectors, including construction, manufacturing and business services, for the past five years from a base level of 100.

Traditionally, seasonal factors mean the average performance for the first quarter of the year is low. But, this year, the index reached 100.3 – the highest level for Q1 since the start of 2008.

Edward Winterton, executive director for Bibby Financial Services, said: “We are encouraged by this strong start to the year among our own client base as we feel this could be indicative of an uplift in activity across the economy.

“If we see year-on-year improvements like this during the rest of 2012, it will be a welcome return to growth, although there is still a long way to go before we can talk about full recovery.”

Almost half of the SME business owners questioned said former customers had returned in the past few months, while two out of five had won new contracts.

A recent report from the Scottish Chambers of Commerce said businesses had made a much better start to 2012 than last year.