Credit, Collections & Insolvency News
Economists lexpect the UK to enter a recession this year, with new research from the EY Item Club showing that the recession could be deeper than expected. The forecast reflected findings that showed the rate of economic inactivity had not fallen as quickly as expected, with the number of inactive people rising by half a…
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The UK economy is forecast to fall into a recession in 2023, driven by tighter financing conditions, further increases in energy bills and weak consumer confidence, before finding a weak recovery in 2024, according to Allianz Trade. It is predicted that in 2023, the UK economy will shrink by -0.9%, compared to just -0.3% for…
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The UK economy is estimated to have entered a recession in the third quarter of 2022, which could last until the end of 2023 and see output fall by 1.9% during that period according to new research by KPMG. The squeeze on incomes is the main driver, with higher inflation and interest rates significantly reducing…
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New research by RSM has suggested tha almost three-quarters of businesses are feeling resilient despite the exceptionally tough economic outlook. According to the the research 71% of middle market businesses say they are prepared to face the recession. While businesses seem confident in their ability to navigate the economic headwinds, RSM’s research showed almost half of…
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According to the latest PMI data by IHS Markit and CIPS, the headline construction PMI fell to a three-month low of 50.4 in November 2022, down from 53.2 in October 2022, reversing the previous upward trend which had been driven by a surprising increase in commercial activity. The recent fall indicates a slowdown in construction…
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The latest economic forecast from the Confederation of Business Industry predicts Britain’s economy will shrink 0.4% next year as inflation remains high and companies put investment on hold. The expected 0.4% fall in GDP is a downgrade from its previous forecast of 1% growth set in June. Business investment is expected to slump by 9%…
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The Institute of Directors (IoD)’s Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, fell to -64 in November, the second lowest figure on record (after the -69 registered in April 2020). In October 2022, the Index recorded a value of -60. The index of confidence in business leaders’ prospects…
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Latest Office for National Statistics (ONS) figures show that GDP fell 0.2% in Q3 2022, Commenting on the fall in Federation of Small Businesses (FSB) National Chair Martin McTague said “Confirmation of a shrinking economy is dreadful news for small businesses that have been facing increasing recessionary pressures for months now.” “Lower levels of reserves…
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A new report from BDO has revealed a sharp decline in economic output and optimism last month, with both down to their lowest levels since the third national lockdown in February 2021, as record-high inflation continues to dampen the economy and prompt fears of a recession. The latest figures indicate that inflationary pressures are to…
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The London Chamber of Commerce and Industry (LCCI) has warned of the impact a prolonged recession could have on small firms. With the Bank of England lifting interest rates to a 14-year high of 3% and forecasting that the economy will be in a recession until mid-2024,/ Richard Burge, Chief Executive of London Chamber of…
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The Bank of England has forecasted a prolonged recession and a deep income squeeze next year, as it scaled back expectations of future interest rate rises despite raising interest rates by 75 basis points to 3 per cent. The Monetary Policy Committee voted to raise Bank Rate by 75 basis points – the biggest single…
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The EY Item Club estimates a 0.3% fall in GDP for the whole of next year, downgrading a previous forecast of 1% growth. It is predicted that GDP should return to growth in H2 2023. before expanding 2.4% in 2024 and 2.3% in 2025. It expects GDP to grow by 4.3% overall this year, with…
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The Bank of England has raised interest rates from 1.75% to 2.25% – the highest level for 14 years and warned the UK may already be in a recession. The central bank had previously expected the economy to grow between July and September but it now believes it will shrink by 0.1%. The Bank of…
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