Working Capital Index – Spring 2017

Journal Article

Lloyds Bank

The Lloyds Bank Working Capital Index is a single-figure measure of the momentum change in operational working capital. It is based on data from Markit’s Purchasing Managers’ Index (PMI) surveys, which contain valuable information about pressures on British private sector companies’ current assets and current liabilities from month to month. This provides an opportunity to track working capital trends over time at the macro level The key finding of the first ever Working Capital Index is that British businesses are under significant pressure to increase their working capital. Yet every pound tied up in working capital is a pound that could be invested in other, more productive areas of the business.

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