Levels of business growth are at their highest in a year for businesses in the North with more than two-thirds (77%) reporting at least one indicator of growth, according to the latest Business Distress Index from insolvency trade body R3.
This compares to just 61% showing signs of growth in February and 49% in June, indicating that growth has returned to the region after faltering in the summer.
One third (34%) of businesses are now reporting an increase in sales volume, the same level as those experiencing an increase in profits, whilst 42% are investing in new equipment and 46% of businesses are expanding (geographically, in staff numbers or areas of business).
Meanwhile, business distress levels are low. Less than a quarter of companies in the North (23%) report any signs of distress, compared to 25% in February and 46% in June.
Richard Wolff, North West chair of R3 and also Head of Corporate Recovery and Insolvency at JMW Solicitors, says: “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.”