Partner Article

Business services to lead the way out of recession

Business services, engineering, post and telecoms will be the front-runners of UK economic recovery.

That’s the finding from PricewaterhouseCoopers in their ‘up-turn’ index, released yesterday.

The index charts the sectors that will be first to benefit from the eventual economic recovery, and has cited business services as the probable leader due to its ‘cyclical nature and long term growth’.

Bill MacLeod, head of assurance at PricewaterhouseCoopers LLP in Newcastle, said: “It is still unclear when the recovery will begin to take hold in the UK but as the UK emerges from the global economic downturn there is likely to be a readjustment of the economic and business landscape. Some industries will fare better and recover sooner than others and the shape of eventual recovery may be quite different to the business environment we’ve witnessed in recent years.”

PwC’s recovery prediction for the oil, gas and mining sector is low due to lower prices of oil and other commodities in the future, which will negatively impact the sector’s profitability.

Metal products, textiles and food manufacturing sectors may be the last sectors to emerge from the economic downturn, according to the index.

This was posted in Bdaily's Members' News section by Ruth Mitchell .