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UK service sector recovery built on "fragile foundations"

6 September 2009

Interim directors could still be called on by the boards of companies in the retail sector despite figures which suggest the UK is emerging from the recession.

The Chartered Institute of Purchasing and Supply's Services Sector Purchasing Managers' Index was recorded at 54.1 for August, which is up from 53.2 in July.

With a figure above 50 denoting growth, Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, said in an interview with the Times that he is optimistic that the recession in the UK would end this quarter.

However, he also warned that it is "important not to get carried away", and that the recovery is built on "fragile foundations".

Mr Goodwin believes that consumer spending in particular should not be taken for granted, meaning that interim directors may still be needed by retailers struggling to turn their fortunes around in the wake of the global economic downturn.

"The labour market is continuing to deteriorate, with this survey pointing to further job losses, and this is likely to prevent any significant take off in consumer spending," Mr Goodwin told the news provider.

In addition to advising on strategy, interim directors can also help in the event of a takeover or inform on the best way to go about succession planning.


Categories: Financial Services

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