Companies set to invest cash as double-dip threat recedes

ON UK GROWTH

RICHARD BUXTON, head of UK equities and fund manager of the Schroder UK Alpha Plus fund on UK Growth

For more information on Richard Buxton, search Adviserhound.com We expect the UK equity market to remain in the pattern of risk-on/risk-off for the remainder of this year. The key tension is between the evident health of the corporate sector and hesitancy at the economic picture. We expect a flat growth ‘muddle through’ outcome. Second quarter results showed that companies have moved beyond restructuring. Balance sheets are largely restored and profits are rising. Much of the free cashflow, however, is being retained as companies, too, wait for economic clarity. As banks return to ...