The UK recession will be over next year, according to a survey of management accountants from medium-sized businesses.
The UK recession will be over next year, according to a survey of management accountants from medium-sized businesses.
Some 85 per cent of the survey’s 400 respondents are confident their business will survive the current economic climate. The consensus forecast for the UK’s return to growth is between 7 to 12 months, a shorter period than when the survey was conducted last year and respondents predicted 12 to 18 months of economic shrinkage.
One year on from the collapse of Lehman Brothers, 84 per cent of those medium-sized businesses which have sought additional finance in the last 12 months have been successful in securing it.
Ray Perry, a director of the Chartered Institute of Management Accountants which conducted the research, says that those mid-sized organisations taking a longer-term strategic view, rather than borrowing heavily and fire-fighting short-term issues, are the ones thriving in the recession.
The most difficult challenges of the past 12 months have been expansion into new markets, declining customer demand and late payments, according to the study.
