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HSBC: 2012 will be slow for business

Date Added: 01/05/2012  

Small business owners are going to continue to find market conditions are difficult over the course of the year, according to HSBC.

Mark Berrisford-Smith, head of economics for HSBC's UK commercial bank, told delegates at an Economic Update breakfast event hosted by the bank's south-west and Wales commercial division that growth is expected to be around 0.5 per cent for the year.

He explained this is despite the fact research has indicated confidence is growing among both businesses and consumers, with conditions remaining difficult for organisations.

In his speech at the Bath Priory Hotel, Mr Berrisford-Smith argued 2013 looks like it is going to be brighter, with fewer firms needing to take company debt advice to avoid being served with a winding up order.

However, with the UK economy sliding back into recession in April due to two successive quarters of negative growth, it may depend on how quickly the situation improves.

"All being well, 2013 should see a return to stronger growth, of around two per cent. Moreover, it is likely to be better balanced growth than the UK has been accustomed to during the past 15 years," Mr Berrisford-Smith said, adding there has been an improvement in the mood of firms and consumers in the last few months.

Gary Burton, HSBC's regional commercial director for the south-west and Wales, stated there are some signs of positivity within the business world, but highlighted the fact there are still many challenges.

He suggested companies look at export opportunities to give themselves the best chance of avoiding being served with a winding up order in the coming months.

Recent research conducted by HSBC indicated that four out of ten organisations are already looking to increase the number of foreign countries in which they trade this year.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

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