Business hopes are on the rise

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LEVELS of business growth are at their highest in over a year for businesses in the North with more than three quarters reporting at least one indicator of growth,

The latest Business Distress Index from insolvency trade body R3 says this compares to just 61 per cent showing signs of growth in February and 49 in June, indicating that growth has returned to the region after faltering in the summer.

A third of businesses are now reporting an increase in sales volume, the same level as those experiencing an increase in profits, whilst 42 per cent are investing in new equipment and 46 per cent of businesses are expanding geographically, or in terms of staff numbers or areas of business.

Meanwhile, business distress levels are low. Less than a quarter of companies in the North (23 per cent) report any signs of distress, compared to 25 per cent in February and 46 per cent in June.

Richard Wolff, North West chair of R3, said: “Hopefully, businesses will now really be starting to feel the benefits of economic recovery. However they do need to be careful that they don’t run before they can walk.

“Cash flow and over-trading can become unexpectedly difficult issues for businesses during times of economic growth.”