CBI predicts improvement in credit for businesses

The CBI (Confederation of British Industry) has given the strongest indication yet that the economy could be improving, with the revelation that businesses are finding it easier to obtain credit for the first time this year.

CBI preditcs improvement in credit for businesses
CBI preditcs improvement in credit for businesses

The body said it expected the situation to improve even more over the coming three months, in news that will be manna to the malnourished event industry, still reeling from job cuts and closures.

Of those firms seeking new credit lines in the past three months, 27% said that availability had improved, while 10% said it had worsened, according to a CBI report.

But the news for small and medium-sized enterprises, which encapsulates a lot of the event industry, was not as rosy. The past three months have seen a moderate decline in the availability of existing credit lines, and while the supply of new credit improved slightly (up 8%), many firms predict it will remain flat in the coming three months.

"Smaller and medium-sized businesses are still facing challenging credit conditions and have fewer funding options open to them than big companies," said CBI director-general Richard Lambert. "We hope that over time their credit supply will improve."

But the increase in credit for larger firms should make them more willing to pay for events, which will be good news for the  industry having seen Core Display Systems and Red Snapper Events hit the wall in the past few weeks.

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