Such has been the length and depth of the current recession that almost every politician or economist has been quick to quell celebrations of the changing fortune of Britain’s economic performance. However, while we may not be out of the woods just yet, more evidence has emerged to suggest that we are certainly making strides in the right direction.
New figures, released yesterday (8 April), suggest that the number of UK businesses showing signs of distress has reached a record low. This is according to a study by R3, the insolvency trade body.
The organisation’s latest Business Distress Index, which monitors the activity of 501 UK businesses of varying sizes and sectors, found that just 33 per cent of British businesses are showing signs of distress. This is the lowest number since the index began in March 2012, when this figure stood at 64 per cent.
For an extra serving of good news, the same company also has indicators that measure growth, which have yielded further positive results. Here come the numbers ...
In its study, R3 has tracked five indicators of distress, the figures in brackets illustrate the percentage of UK businesses suffering from the problem as of February 2014: decreasing profits (21 per cent), decreasing sales volumes (19 per cent), fall in market share (11 per cent), the use of overdraft facilities (11 per cent) and making redundancies (four per cent).
Meanwhile, 65 per cent of businesses showed at least one sign of growth, slightly down from the record 68 per cent in October 2013 but much higher than the 46 per cent in March 2012. By indicator, the growth areas were: investing in new equipment (37 per cent); increased sales volumes (34 per cent); increased profits (30 per cent); business expansion (28 per cent); and growing market share (28 per cent).
R3 VP, Giles Frampton, commented on the results: “It’s very encouraging that business growth is keeping pace with the record figures we saw in the autumn. The repeat performance of the last survey’s strong figures gives weight to the idea that the economic upturn in the last six months was more than just a blip.”
Some experts will still urge caution, but for British businesses it is another indication that the green shoots of recovery are present and gaining ground. 
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