Siemens Financial Services (SFS) has published
research which shows a growing desire among global companies,
including those in the UK, to increase their capital expenditure on
equipment and infrastructure.
SFS suggests, while UK credit conditions
remain tight, businesses will need to look for alternative
financing such as asset-based financing to fund this capex
increase.
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The fifth annual SFS Business Investment
Confidence Index measures businesses’ desire to invest in their
equipment and infrastructure across eight economies and in UK the
index has increased from 62 last year to 83.
SFS said in previous years a clear link has
been observed between the Index and actual business investment
trends and this year’s results anticipate a rise in the level of
capital expenditure among UK companies in 2011.
The SFS Index takes measurements from the US,
China, Germany, France, Spain, Turkey, Poland and the UK, by
interviewing 1000 companies in each country on their expectations
and previous year’s growth and publishes individual scores.
This year the global average score was 96 and
only the Spanish score of 80 was lower than the UK. However, the UK
confidence Index is at its highest since the survey began in
2007.
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By GlobalDataChina, Turkey and Germany led the pack with
scores over 100.
David Martin, general manager for SFS in the
UK, said: “Companies which have adopted austerity measures in the
previous years are beginning to contemplate new investment in
upgraded equipment and infrastructure to boost efficiency and
productivity as well as maintain competitiveness.
Echoing research
by the Bank of England reported by Leasing Life in
late June, Martin added credit conditions are still tight
especially for SMEs and said: “To ride the crest of the wave of
economic recovery, companies must start exploring alternative
financing techniques in addition to standard corporate borrowing in
order to meet the challenges of a tight credit market.”
grant.collinson@vrlfinancialnews.com
