This year will mark a turning point for ambitious businesses across Yorkshire and the Humber as they look to capitalise on the UK economic recovery to invest in growth, according to an HSBC report.
Commercial director Mike Hemingway said the report highlights the upwards revision of GDP growth over the last 12 months, the UK economy’s outperformance of the Eurozone and a rise of business confidence as providing the perfect conditions for growth. It has identified Britain’s business growth potential for 2014 by incorporating analysis of 39 separate forecasts of GDP and investment, as well as the findings of four leading business barometers.
The Business of Growth predicts an increase in fixed investment – physical assets including machinery, premises and stock – of 7.1 per cent in 2014. This compares to a pre-recession average annual investment growth of 3.6 per cent. This figure has also been revised significantly upwards in recent months, marking increased confidence in the recovery. In March 2013, forecasts for fixed investment stood at just 4.7 per cent for 2014.
This analysis is supported both by HSBC’s own experience, where new term lending is up 16 per cent year-on-year and lending is up 37 per cent.