Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1500138305
September 10 2019

SME confidence hits record low amid ‘Brexit limbo’

suzie10 News, SME News Brexit, Chirag Shah, CYBG, Gavin Opperman, Nucleus Commercial Finance, small business, SMEs

CONFIDENCE among small- and medium-sized enterprises (SMEs) hit a record low in the second quarter of 2019, research claims.

CYBG’s SME Health Check Index – a quarterly measure of performance and outlook for UK small businesses – fell by 6.9 points to 41.9 in the second quarter of 2019.

This is the lowest score since the data collection began in 2014 and there was also a 6.9 point fall between the first and second quarter – the largest quarterly drop in almost two years.

The lender said the reduction was driven by SMEs coping with increased costs and declines in capacity and confidence.

Read more: British Business Bank finds most SMEs don’t seek finance advice

Read more: Alternative lenders help push BBB-facilitated loans past £12bn

The lending indicator also dropped to a 15-month low of 58, with overdraft and loan balances dropping by £113m compared to the same level as in the fourth quarter 2018.

There was some optimism in terms of job creation, with the annual rate of employment growth increasing from 1.1 per cent to 1.3 per cent.

“The health of UK SMEs is pivotal to the success of our wider economy, and the picture painted by the results this quarter was mixed,” Gavin Opperman, group customer banking director at CYBG, said.

“On the surface things may look a little gloomy, but cause for optimism can be found.

“The labour market has remained resilient, with SMEs continuing to hire, and wages continuing to grow, despite the tougher conditions.”

Commenting on the data, Chirag Shah, chief executive of Nucleus Commercial Finance, said the decline in confidence was unsurprising given the “Brexit limbo.”

“SMEs play a vital role in the strength of the UK economy and so it is important they continue to have access to support in these politically turbulent times,” Shah said.

“We want to reassure businesses that alternative lending solutions can help them achieve their ambitions and remain competitive in a challenging environment.”

Read more: New finance council launched to help SMEs ahead of Brexit

RateSetter’s Mario Lupori on the new product range Next-level transparency

Related Posts

Dog at school

Industry News, News, Top 3

Five key takeaways from the fintech review

Closed sign

Industry News, News, Property, Top 3

The House Crowd goes into administration

investing

Industry News, News, Top 3

Government urged to modify EIS to promote lending

Popular posts:

  • The House Crowd goes into administration
  • RateSetter to stop investment withdrawals from 26 March
  • UK Finance calls for global fintech cooperation
  • Metro Bank plans to offer RateSetter lending through…
  • RateSetter confident of growing Metro Bank’s…
  • FCA puts the brakes on Buy2Let Cars
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by