After five years of near darkness, spotting indicators of a resurgence in UK economic activity is a hard habit to break. So, at least for now, the habit is indulged.
Initial Public Offerings (IPOs) occur when a company is floated on the London stock market and, almost by definition, is a nascent economic trigger. It follows that when in a downer, IPOs dry up and when on a high new finance is sought. EY, the large accountancy firm, has produced figure to show that in the quarter to September 013 £601m was raised and this is an increase of 180% on the equivalent period last year. Furthermore, for the nine months of 2013, IPOs generated more than £3bn, twice that raised in the whole of 2012.
Looking forward, good solid businesses are known to be floating some of their activity including Royal Mail, Stock Spirits Group and Gala Coral.
Then there is the eternal bellwether of new vehicle registrations. According to the Society of Motor Manufacturers, 403,136 sales were made bearing the new 63 plate in September 013 being the highest monthly figure since March 2008 – the year the sky fell in, or rather the tyres were punctured. Performance in Europe is worth hailing too. More than one in seven of all new cars registered in Europe during September was built in the UK with only Germany selling more.
Not all habits are bad. Furthermore, my financial adviser was super-bullish at our annual chat this week. Let the good times roll.
JGS 7th Oct 2013