Firms benefit from economic recovery

FEWER firms are reporting cashflow problems showing how British industry is 'reaping the benefits' of the global economic recovery, new research suggested today.

Fewer than one in five companies surveyed by banking giant Lloyds TSB said they had cashflow difficulties in the past year, the joint lowest figure in over 10 years.

The poll of 2,100 firms showed that hoteliers and caterers were having the least problems, while manufacturers were most likely to have cashflow difficulties.

Diana Brightmore-Armour, managing director of Lloyds TSB Corporate said: 'These outstanding figures demonstrate exactly how well UK firms are adopting a disciplined approach to managing their business performance.

'This comes at a time when many firms are reaping the benefits of the demand for sales generated by the global economic recovery, high employment and strong growth in personal incomes.'