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news opinion


Welcome to growth. You may not have been here before, but you will learn to love it once you know how to handle it….


A managing director related recently how he had only known the downturn years, and wasn’t quite sure how to run a business enjoying spectacular growth.


A senior lawyer told us how he had not known such a spurt in business activity since perhaps five or six years ago.


A recruitment consultancy said the demand for manpower was now “going through the roof”. An accountant said he had never been so busy in over a decade of running his firm.


There is more than enough evidence all around the south to suggest that 2014 is seeing the recovery pick up speed. Demand, which has been pent up for so long, is now starting to fuel a noticeable increase in orders.


The UK is experiencing faster growth than many of its competitors. The jobs growth is rising at its fastest rate in 43 years, and with the economy recording five consecutive quarters of growth, we can all relax now, can’t we?


Actually, no.


A real threat to our recovery is the state of the eurozone. The turnaround has stalled in many parts of Europe: France is in the doldrums, Finland is in recession, Holland is seeing a contraction in the economy, and nations like Spain and Portugal are continuing to be stifled by their debt crisis.


Overall, the eurozone expanded by just 0.2% in the first three months of the year. Those who hate the euro currency might be laughing into their beer, but the fact is we need a strong Europe to aid the UK’s economy.


Europe needs a game plan for growth. Without it, the UK gains of the past few months might be in jeopardy.


David Murray Publisher


New orders boost fast-growing region


Private sector companies in the South East reported continued growth in output and incoming new business in April. That said, respective rates of expansion slowed further. However, employment recorded stronger growth than in March, with staffing levels rising more quickly than the UK average.


April saw a continued rise in business activity, as highlighted by the Lloyds Bank South East Business Activity Index – a seasonally-adjusted index that measures the combined output of the region’s manufacturing and service sectors – posting 57.8 from 58.0 in March. Companies commented that an increase in new business from clients had contributed to higher business activity.


New orders continued to rise in April. However, the latest data pointed to a slight easing in the rate of growth, to the lowest seen since April 2013. Firms that posted an increase in new work commented on new clients and key projects having been won.


South East companies recorded stronger growth in employment during April, with around one-fifth of firms noting increased staffing levels. Panellists commented on hiring new workers to cope with the increased demand and to try to reduce backlogs of work. The rate of job creation was the fastest in 2014 so far.


The level of unfinished business rose again in April, although only slightly and at the slowest rate in the current 10-month run of accumulation. Some of the anecdotal evidence attributed higher backlogs to increased pressure on working capacity amid rising order intakes.


Input price inflation quickened to a three-month high in April but remained relatively muted. Panellists attributed higher input prices to increased energy costs and higher demand.


Following the trend in input prices, output prices also rose. However, the rate of charge inflation remained only marginal.


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www.wilkinskennedy.com www.businessmag.co.uk 42252 WK Business Magazine ad E.indd 1 THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2014 12/11/2013 16:12


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