Credit, collections & insolvency news
The private sector activity fell slightly in the three months to December (weighted balance of -8%, from -11% in the three months to November), according to the CBI’s latest Growth Indicator. The latest decline extends a stretch of one-and-a-half years without growth, a trend which firms expect to continue in the new year (-6%). Services…
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British businesses became more downbeat about the economic outlook in December, with the biggest monthly decline in confidence in more than a year, according to the Lloyds Bank Business Barometer. The survey fell by seven points to 35% from November’s 21-month high of 42%, marking the largest monthly fall since August 2022. Firms’ hiring intentions…
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The UK economy has performed better than expected this year, but the outlook remains weak and vulnerable to shocks. UK GDP is expected to continue to grow at a modest pace of 0.5% this year and next, and only pick up to 1.0% in 2025, according to the latest KPMG Global Economic Outlook. Despite the…
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UK inflation fell to 3.9% from 4.6% in October, the decline is abigger dip than expected, and inflation is now the lowest it’s been in more than two years according to the Office for National Statistics (ONS) data. ONS Chief Economist Grant Fitzner said “Inflation eased again to its lowest annual rate for over two…
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Research by Lloyds Bank shows that business confidence has climbed back to levels not seen since before Russia’s invasion of Ukraine and the subsequent energy crisis. The rise in business confidence is significantly above the long-term average of 28%, and has been driven by increased trading prospects for the year ahead, greater optimism in the…
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UK inflation fell to the lowest rate in two years last month, falling to 4.6% in the year to October from 6.7% in September. Economists have said the main reason inflation has fallen from its peak of 11.1 per cent in October 2022 is due to a reduction in the energy price cap, which limits…
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Latest Office for National Statistics (ONS) data has shown that the economy failed to grow in Quarter 3 (Q2). While GDP was up 0.2% in September, growth for August was revised down to 0.1% from 0.2%. With GDP flatlining in Q3, it means the UK has avoided a recession in 2023, with this defined as…
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Allianz Trade has predicted that business insolvencies in the UK are set to increase in next few years. The report anticipates that business insolvencies in the UK will hover around 30% above pre-pandemic levels by 2025, with notable peaks expected in 2024 (29,850 cases i.e. +5%) and 2025 (28,400 cases i.e. -5%). The rise is…
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The UK should still avoid a recession, although GDP growth is set to remain sluggish for the remainder of 2023 and into 2024 amid headwinds from high interest rates and a weaker-than-anticipated labour market, according to the EY ITEM Club’s new Autumn Forecast. Following a better-than-expected start to the year, GDP growth expectations for 2023 have…
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Debt-laden companies across Europe, Middle East and Africa are facing a $500bn refinancing scramble in the first half of 2024. This challenge could lead to the demise of many zombie businesses, despite the expected peak in interest rates offering some relief. The value of company loans and bonds maturing during this six-month period is higher…
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Latest figures from the Office for National Statistics (ONS) has shown that GDP grew 0.2% in August, and 0.3% between June to August. The services sector was the biggest contributor with growth of 0.4%. Consumer services were down 0.6% after a 10.8% fall in sports, amusement and recreation activities. Production output fell 0.7% whilst construction also…
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Financial services activity held relatively firm in Q3 of 2023, despite some softening from a buoyant second quarter. Optimism and business volumes growth were quick in the three months to September, although to a lesser extent than the previous quarter, according to the latest CBI Financial Services Survey. The quarterly survey, found that Financial Services…
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The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, remained subdued at -26 in September 2023, similar to August’s reading of -28. This is the fourth consecutive month in which economic confidence has been relatively low, following a large drop in June. Order books were suggestive of…
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