4


news opinion


On the outside, looking in on the eurozone, we can be forgiven for feeling a little smug. Thank God and Gordon Brown that we never became part of this dysfunctional club


But we should also sympathise with our European friends. Because life in some parts of the eurozone is hideous – and, as ever, it‘s the ordinary folk who are suffering the most.


For businesses here in the south, uncertainty over the fate of the euro is acting like a chain around the foot of the economy, a chain that companies are having to drag along as they strive for growth.


A number of local business leaders have argued recently that the south is not really in recession – and it‘s all something that is happening north of Birmingham.


But they would also contend that the Greek election vote changes nothing. We are mired in a cycle of uncertainty that is likely to continue for months – perhaps even years – to come.


As we go to press, Spanish bond yields are back up to 7%. It seems the 100 billion euro bailout of Spain‘s banks bought the country just 18 hours of good news. After that, the rally was over as the markets decreed the bailout had done little to solve the underlying problems.


And so on, and so on. The single currency‘s woes will mean summit meeting after summit meeting – and sticking plaster after sticking plaster. The leaders of Europe will not want to admit that the whole project is fatally flawed, and while they dither and debate, the pace of our own recovery is slowed.


David Murray Publisher


www.businessmag.co.uk


However, firms in the South East are expecting an improvement in financial performance. Turnover growth of 5.4% is forecast for the coming 12 months and predicted gross profits and sales volumes growth for the next year have also been rising in 2012, reaching 4.8% and 5.2% respectively this quarter.


In addition, labour market conditions have improved in the South East seeing private sector employment


businesses’ increasing optimism about the South East’s economic future and turn it into sustainable, consistent growth.


“South East businesses have predicted good levels of growth in financial performance, employment and investment over the coming year. In line with the business investment growth predictions by the Office for Budget Responsibility (OBR), rising investment growth in


Follow us on Twitter


of the summer events in the UK, which will effect both optimism and productivity.


“We are seeing strong performance from those companies who are active in international markets outside Europe, particularly the Middle East and South East Asia and also those who have clearly innovated and provided cost and performance led solutions to their customers.”


In the September issue of The Business Magazine


• Mergers & Acquisitions • Focus Windsor & Maidenhead • Sustainability • Dining & Your Business


Details: 0118-9766411 sales@elcot.co.uk


THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2012


Confidence rises in the South East


Business confidence in the South East is at its highest point since Q2 2010 according to the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM). Senior business professionals interviewed in the region recorded a confidence index score of +12.0 which is in line with the national level of confidence.


Despite this rise in confidence, market conditions in the South East are a key concern for local businesses. Half of firms report levels of customer demand as a greater challenge now than a year ago. Competition is also increasingly being cited as a rising challenge with 44% of firms reporting this in Q2 2012 compared to 36% in Q2 2011.


growth and average headcount increases of 1.4% over the past year. Further to this, employee numbers are expected to grow over the coming 12 months by 1.9% which is the strongest growth rate to be forecast in the region since Q1 2011.


Businesses in the South East also expect to increase capital investment over the coming 12 months by 1.3% which reflects stronger business confidence in the region.


Speaking of the findings, ICAEW’s South East regional director, Fay Webster, said: “Although there has been a large increase in confidence in the South East there is still an air of fragility to the economy. Government needs to harness


the South East will help to boost the region’s economic prospects.


"Furthermore, the official market statistics show that the regional unemployment rate has fallen over the past quarter by 0.1 points. The unemployment rate for the region was 6.3% in the three months to February, remaining well below the national average of 8.3% for the same period. In addition, a £35 million pot is being launched by the Regional Growth Fund in Kent offering interest-free loans to businesses that are looking to expand. The initiative aims to create 5,000 new jobs in four years.”


Norman Armstrong, partner at Grant Thornton in Southampton, said: “Early 2012 has seen improvements in demand and performance, but competition for customers remains fierce. Optimism fuelled by modest improvements in demand and growth need to be measured against continuing uncertainty within Europe and the impact


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52