East Anglia: Region’s firms are ‘less distressed’, says survey

Shay Lettice, eastern region chairman of R3, the national insolvency trade body.

Shay Lettice, eastern region chairman of R3, the national insolvency trade body. - Credit: Roger Adams

east of england: Business optimism for economic recovery has surged over the past six months, according to the latest Business Distress Index from insolvency trade body. It recorded falling levels of distress across the East of England, but less than half of firms believe their activity will rise over the next year.

More than half (53%) of UK businesses are now more positive about the health of the economy, compared to 39% last March.

R3’s eastern region Chairman Shay Lettice, a partner at Cambridge accountancy firm Peters Elworthy & Moore [PEM], advised caution.

“Whilst these statistics are encouraging, there is a slight disconnect between businesses’ optimism about the economy and their optimism regarding their own situation,” he said.

“While over half of businesses are more positive about the recovery of the economy, the number which reports their activity will increase over the next year has yet to break through the 50% barrier.”

You may also want to watch:

The R3 research shows that 43% of businesses expect their business turnover to increase in the next 12 months, up from 37% in March. However, 50% of businesses expect activity to remain the same.

Shay Lettice added: “There have been false-starts and phantom green shoots before, so it is not surprising that while businesses’ general outlooks are positive, they’re still cautious about translating this optimism into their own prospects.”

Most Read

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter
Comments powered by Disqus