Services and recruitment sectors lead the way with increases in turnover

This increase was led by the services and recruitment sectors, which saw turnover grow quarter-on-quarter as well as year on year. However, turnover in the manufacturing, engineering and distribution sectors decreased over these periods.

The data echoes recent UK GDP figures from the ONS, which showed that the UK economy has continued to shrink for a third consecutive quarter – weighed down by the construction sector which fell by 5.2 per cent in the second quarter. The quarterly barometer by ABN AMRO Commercial Finance is comprised of data from 700 of its commercial finance customers – all under £5.6m turnover and with fewer than 50 staff.

Peter Ewen, managing director, said: “This latest barometer reflects the wider UK economic picture as the services sector continues to perform well, while industries producing physical goods lag behind.”

The services sector experienced a rise in turnover of eight per cent quarter-on-quarter, and five per cent year-on-year. Recruitment companies increased turnover by 15 per cent quarter-on-quarter and nine per cent against the same period in 2011.

In contrast, turnover fell in the product-based sectors – manufacturing, engineering and distribution – between quarter-on-quarter and year-on-year. The largest drop was in manufacturing, which experienced a decrease in turnover of 10 per cent between the first and second quarter this year. The engineering sector saw a drop in turnover of four per cent quarter-on-quarter and three per cent year-on-year. Distribution saw a similar fall of three per cent quarter-on-quarter and five per cent year-on-year.

Mr Ewen said: “It’s encouraging to see such strength in services and recruitment sectors, but manufacturing, engineering and distribution have all struggled through another quarter.” He added that the recruitment industry has also been “buoyed significantly” by increasing demand for temporary workers.