Since the economy narrowly avoided a "triple dip" recession last week some more encouraging economic news has emerged. Mortgage approvals and lending to businesses improved in March by more than expected. In fact, lending to small and medium sized businesses, excluding overdrafts, increased by £239m. This is the first rise since August 2011. It should be noted that the many new lends may in fact be refinancing of existing arrangements rather than completely new loans. The finance market is becoming increasingly complex with more entrants into the market. Read our pages about funding options for business and you will see just how many different ways there are to lend/borrow money.Coupled with this there has been reported, in London at least, a strong recovery in house prices although this is mainly down to a distinct lack of supply. However sentiment is always important and higher house prices will give a boost to our consumer led economy. Of course, a rebalancing of the economy towards more manufacturing seems to be a long way off as the small growth in GDP reported earlier was almost entirely down to strong growth in the service sector.
Is the economy on the turn?
1 May 2013