The post-Christmas period is always the acid test for consumer confidence in the economy, and the brief festive lull also gives a breather to business leaders to sit back and gather their thoughts for the coming year. If it’s any consolation, after all that doom and gloom mongering in the run-up to Christmas, we did finally put our hands in our pockets and buy things, albeit with cautious optimism and steering clear of high-ticket items. The retailers consequently reported performance to be acceptable but not remarkable, and this also appears to be the basis of the business outlook for 2013.
According to a survey carried out last autumn by YouGov, with particular emphasis on businesses’ attitudes to raising finance, the results show that over 80% of companies through 2012 had done so by approaching their bank. ‘Your Outlook for 2013 – a business survey’ canvassed over 800 UK business leaders from September to October 2012 to gauge opinions, expectations and the priorities they had identified for the coming year.
But, because of the continuing fears about the speed of economic recovery this year, or the lack of it, many are still wary of raising funds in 2013. The good news for Johnson Reed is that some of the most positive reactions have come from the sectors in which we have proven track records. Computing, electronics, hospitality and leisure, marketing, publishing and telecoms all expressed a quiet confidence that the situation would improve.
After an uncomfortably long period of credit levels falling because of lack of demand, rather than actual supply, it’s refreshing to learn that we may have turned the corner at last. Over one-third of respondents said that they would choose private equity or venture capital for their borrowing needs. Which should keep Johnson Reed up there still, in a very healthy state.
