Wonderful Wefinda weekly news - Week ended 29 October 2010

Economy grows at a faster rate than expected
News this week that the British economy grew by 0.8% in the third quarter was welcomed by economists. Although the growth rate was slower than the 1.2% seen in the second quarter it was double the rate forecast for the third quarter. This result pushes the prospect of a double dip recession further away and means that the Bank of England may not need to pump more money into the economy.

Business confidence improves
Hot on the heels of the good news about the growth in the economy comes a report from utility price comparison service Make it cheaper. Their survey of 1,000 SMEs reported that 76% had an unchanged or brighter outlook compared with only 58% six months ago. With the latest employment statistics showing over four million of us working as self-employed and a rise in new small businesses, perhaps the economy is being pulled back into line by SMEs.

Are we a nation of “digital shopkeepers”?
We are, according to a survey commissioned by Google with the internet industry now the fifth largest contributor to gross domestic product. Co-incidentally this survey comes in the same week as one from E-bay in which more than 80% of internet sales businesses accuse the Royal Mail of stifling competition. The survey, reported in the Independent, shows SMEs want more flexible evening pick up services, better tracking and week end deliveries. Let’s hope that the recent findings on cargo aircraft don’t hinder Christmas deliveries too much.

Or is our manufacturing base on the rise again?
The CBI says that 31% of small manufacturers expect to boost production in the next three months, whilst only 12% are predicting a fall. With the government pushing the banks to increase lending to small business and larger order books, could this be the time for small manufacturers to start investing again in plant and machinery.

So, what do we have to look forward to?
Appropriately enough following the news item above, on Tuesday in Westminster Hall there is a debate on the future of the Post Office network. The Treasury select committee is examining the spending review on Monday and Tuesday whilst on Thursday the Business Innovation and Skills committee examines Government Assistance to Industry.

And finally
We are used to snack machines, coffee machines and water coolers. Now, from Germany comes another idea, art vending machines. Selling a mix of unique sculptures and paintings in small boxes, for 2 or 3 euros the art vendors are catching on with 100 machines already up and running and more planned.