Only a third of those surveyed have plans for a major investment in the year ahead – the lowest level ever recorded in the past five years of the PwC Private Business Barometer. This is despite the fact that since 2010 accessing funds has become less of an impediment. Banks are more willing to lend, interests rates are low and look likely to remain so for the foreseeable future. Good companies are bucking the trend of caution around investment, and are talking to banks regarding debt or equity financing with the aim of trying to get ahead of the game. By innovating and always looking to develop and reinvent themselves these companies are driving their own success.
Of the businesses that exceeded their targets, 45 per cent are planning to invest in the next 12 months, along with nearly a third of those that met their targets, suggesting a potentially positive impact on employment and the economy in the not-too-distant future. By contrast, just 17 per cent of businesses that undershot their target are planning to invest.
Those planning on investing say they are less likely to use a bank to fund the project, with three in 10 saying they already have funding.
- Around one in three companies are planning to invest.
- Banks are looking to lend.
- Interest rates are likely to remain low.
Plans for major investment for the year 2008 – 2013