Recession: what recession?
7th August 2008
THE TRADING outlook remains bright for a wide cross-section of south London firms, with no sign as yet of the long-forecast recession.
Those are the optimistic conclusions of a recent survey conducted by South London Business, a Croydon-based organisation that offers a voice to all 75,000 firms in the 12 south London boroughs.
Over the past six months, there has been a negative impact on some respondents from increased fuel costs (25 per cent) and reduced demand (23 per cent), while the additional interest charges for raising capital have also taken their toll (11 per cent). And 40 per cent believe the British economy is heading for recession at some point.
But the vast majority of respondents remain highly positive about their own prospects. Over the coming six months, more than eight out of ten (82 per cent) expect to continue trading at the same level or even to expand, while a similar proportion (80 per cent) intend to retain or increase staff numbers.
In the same period, 44 per cent predict their general level of trade will increase, while 35 per cent believe it will remain the same. Overwhelmingly (87 per cent), the survey’s respondents are small or medium-sized firms employing less than 50 staff. Nearly half (47 per cent) are in the business services sector: other sectors significantly represented include education and training (13 per cent) and wholesale and retail (11 per cent).
Commenting on the survey, Peter Pledger, chief executive of South London Business, said: “This is a very optimistic result based on respondents’ personal experiences of the market.
"It would seem that south London firms have not been seriously worried by all the economic gloom-mongering in the media and elsewhere.â€
