Recruitment to recover in 2010

The final quarter of 2009
will see increasing business failures and trading conditions are likely to
worsen again in quarter one of 2010 according to predictions released in a new
business index – unique within the alternative finance sector.

According to the ‘First of a kind’ index, which has
tracked small business debt factoring volumes over previous two years, which
suggests a V’-shaped recovery pointing to trading conditions showing signs of
improvement next year

The first in a series
of quarterly reports aims to reveal key findings about the UK economy and in
particular the recruitment sector, as well as manufacturing, construction,
wholesale and transport industries.

The Business Factors Index,
compiled by leading independent invoice financier Bibby Financial Services,
cites that despite suffering the effects of the recession more recently than
other industries, the recruitment sector remains one of the most upbeat towards
the current market as well as future recovery.

The Bibby Business Factors
Index tracks small business turnover over the past two years and the trends
derived from this data have been collated with the results of a series of
interviews conducted with more than 300 business owners across all industries.

Findings from the index are
supported by the CBI’s latest economic forecast showing that, although the
economy is expected to show signs of recovery in the second half of this year,
with GDP expected to grow by 0.4% in Q4, the pace of recovery will remain
constrained by a lack of consumer spending and a decline in government
expenditure.

30 October 2009