Economic growth continues as survey data points to broad recovery

The UK economy grew by 0.8% during the third quarter of 2013

New survey data has suggested that the UK economy is continuing to grow at record speeds, whilst the upturn remains broad-based and sustainable.

This is good news for all small-to-medium-sized enterprises (SMEs) across the sectors as a broad-based economic upturn indicates a more balanced and sustainable economic picture going forward.

Lloyds’ regional purchasing managers’ index (PMI) figures, which take into account data from more than 1,200 manufacturing and service firms, reported the quickest increase in business output since the survey first began back in 2001 with the PMI figure of 61.8. A figure of 50 and above indicates growth in a sector.

The survey recorded a 13-year high figure for employment rates across England and Wales, as private sector firms are increasingly looking to hire.

Meanwhile the Bank of England has stepped up its forecasts for economic growth for 2013 as a whole from 1.4% to 1.6%, whilst 2014’s growth forecast was increased from 2.5% to 2.8%.

Unemployment is expected to fall to 7% by the end of next year, as Bank of England governor Mark Carney stated: “Jobs are being created at a rate of 60,000 per month. The economy is growing at its fastest pace in six years”.