Are we fully in recovery or not?

Published: 15 October 2013

My recent personal reading has taken me through a myriad of perspectives on the market at large:

Manufacturing Jobs Growing http://www.telegraph.co.uk/finance/economics/10346528/Factory-jobs-grow-at-fastest-rate-in-two-years.html

Recovery only in London http://uk.finance.yahoo.com/news/uk-recovery-cannot-depend-london-200346791.html

Ailing Businesses Need Turnaround Help http://www.insidermedia.com/insider/midlands/99624-ailing-businesses-should-seek-turnaround-help-round-table

Car Sales Up http://www.bbc.co.uk/news/business-24396562

MBO Market Subdued http://www.insidermedia.com/insider/midlands/99888-mbo-market-subdued-despite-rise-activity

House Prices Strengthening http://www.bbc.co.uk/news/business-24378569

Construction Output Falls http://www.bbc.co.uk/news/business-24489982

As you can see it is hard to discern whether we have a sustained economic recovery on our hands. Certainly the macro headlines look good, with both manufacturing and service sector data in the UK pointing to an accelerating economic recovery. Undoubtedly there is and will continue to be regional variation, local trends, and the ups and downs you would expect from an economy that is still over 3% smaller than it was in 2007. http://www.bloomberg.com/news/2013-09-13/u-k-recovery-seen-pushing-economy-to-fastest-growth-since-2007.html

It is however impossible to ignore the more upbeat mood of business in general, especially in a country as traditionally reserved as Britain. Our increased search activity across a number of sectors, including manufacturing, supports the theory that the market is lifting. Fortune favours the brave and as Martin Luther once said; “Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree”.

There is no doubt that the recession created a leaner, meaner manufacturing sector with a greater focus on added value. Harnessed with an improving global outlook, there is reason to think those prepared to invest now will reap the benefits. My advice - Get planting!

David Thomas is a Principal Consultant in the Energy, Manufacturing & Infrastructure Practice at Berwick Partners

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