20120502 Follow Me 355 Corporate saving and the budget

Nor is it obvious that businesses have much excess capacity. A measure of industrial capacity published by the CBI, an employers group, is close to its long-run average.

Confidence is very important for the  economic recovery.

In economic crisis, many enterperises go bankrupt. It is natural for firms to take cautious to extend the time of payments as well as the accounts receivable turnover decreases greatly. It's a crisis period of confidence. Accounts receivables turn to bad debt, while compaines have less access to get bank loans or to finance large amount money from the stock market. For a manager with the common sense, he is ordinary to retain much money at hand, even though there are many investment opportunities springing up.