The Office for National Statistics (ONS) has released its quarterly estimate for July to September 2022.
The main headline-grabbing attention, picked up by our not-so-positive media outlets, is that GDP is falling and, in September alone, fell by 0.6%. This was in part affected by the Bank Holiday for the State Funeral of Her Majesty the Queen.
However, when you look at the information in more detail, it’s not all bad news. Certain sectors, including exporters, are doing very well.
Headlines from the report show that the service sector is experiencing flat output, and the production sector output fell by 1.5% in the quarter.
Construction output did rise by 0.6% but this sector is still showing a slowdown from the previous quarter.
Overall business investment fell by 0.5% and is currently on a downward trend as businesses take stock and prepare for tough times and increased costs through the winter.
Contrary to the big picture, there were increases in education, financial and insurance sub sectors over the quarter. And exporters were the shining stars.
The export sector grew by 8%, driven mainly by a weak pound and increases in the exports of machinery, transport and fuels.
We have also seen an increase in exporters turning to new and innovative forms of finance to fund this growth.
Trade finance, factoring and invoice discounting have always been common for exporters, but more and more are now realising that their VAT tax receivable can be used as an asset.
Advance funding of your VAT tax credit gives exporters more predictable cash flow, enabling them to turbo charge their growth and expansion.
Adsum is the only company that can calculate your tax credits and advance the funds the same day. This gives exporters a vital cash flow boost in real time.
For more information on how Adsum’s services can help your business, please get in touch
today.
