The EU economy is in the doldrums due to the lack of a strong industrial policy.
Allianz Trade has published a report, ‘Industrial policy: old dog, new tricks?’, which argues that the absence of a strong industrial policy is causing the European economy to fall further and further behind China and the US. The report suggests that rather than developing policies based on its own strengths, the billions it invests are […]
Upcoming political outcomes will test resilience again.
Allianz Trade’s Mid-year Economic Outlook 2024-25 predicts global GDP growth of +2.8% in 2024 and 2025, with growth slowing to +1.7% in the US and reaching potential in the Eurozone at +1.4% in 2025. China will also continue to manage its growth slowdown (+4.3% in 2025). However, risks remain tilted to the downside, given heightened […]
UK business conditions, measured by sales and cashflow improved in Q2, returning to pre-pandemic levels.
The BCC’s latest Quarterly Economic Survey shows measures of UK business confidence and business conditions slightly improved in Q2 2024, albeit from a very low base. 38% of firms (compared with 36% in Q1) said they had seen an increase in domestic sales over the previous three months, while 43% reported no change and 20% […]
Compared to pre-pandemic levels, May 2024 figures indicate a 48.8% increase in insolvencies.
Latest data from the Insolvency Service has found that corporate insolvencies in England and Wales decreased by 6.4% in May 2024 (to 2,006) compared to April. This is, in turn, a decrease from May 2023’s figure of 2,547. However, compared to pre-pandemic levels in May 2019 (1,348), May 2024 figures indicate a 48.8% increase in […]
UK company insolvencies in June 2024 were 13% higher than in May.
New data from Creditsafe has found that 2,390 companies in the UK became insolvent in June 2024 – a 13% increase compared to May and 6% higher than the same month in 2023. 16% of insolvencies in June came from within the UK construction sector. The total number of UK company insolvencies for 2023 […]
Profit Warnings in Q2 2024 increased by more than 20% compared to Q1
InfolinkGazette’s Quarterly Report for Q2 2024 has shown that the number of profit warnings continues to cause concern. Profit Warnings in Q2 2024 increased by more than 20%, from 113 in Q1 2024 to 139 in Q2 2024. Worryingly, InfolinkGazette’s data also demonstrates a significant increase in the number of “going concern” or “material uncertainty” […]
One in five UK businesses report that late payment problems have worsened in the past year.
New research from Premium Credit shows that late payment issues remain a significant concern for UK SMEs. 20% of firms report a growing problem with late payments, and 5% indicate that the issue has become much worse. The study identified that one way SMEs manage cash flow is switching to monthly insurance payments instead of […]
UK Metals Sector 2024: Economic challenges and future prospects.
Tokio Marine HCC has published a report on the UK metals sector, highlighting the challenging conditions faced in 2023 and early 2024. Demand was subdued, thereby exerting downward pressures on prices (which, after falling in H2 2023, increased only marginally in Q1 2024), and although forward-looking indicators point towards a slightly brighter future, high interest […]
High credit risk and rising insolvencies plague the UK construction sector in 2024.
Tokio Marine HCC has published a report on the UK construction sector, highlighting that credit risk remains high in 2024, with business failures and late payments rising. Insolvency figures have increased for three consecutive years, with the sector now accounting for 17.4% of all UK insolvencies. Small profit margins and fixed-price contracts hinder the ability […]
20% more companies in Western Europe than last year report anxiety about a significant worsening of their Days-Sales-Outstanding (DSO).
Atradius has published the key findings of the May 2024 edition of its Payment Practices Barometer for Western Europe, a survey based on feedback from approximately 3,000 domestic and export suppliers in fourteen markets and across eight sectors. The survey found that three in five businesses across Western Europe expressed concern about an increase in […]
Across Europe, the average business is losing more than a quarter of the working year chasing late payments.
According to the annual European Payment Report from Intrum, 34% of businesses suggest that they are more likely to request longer payment terms from suppliers or pay later than agreed, and a further 15% of businesses say they will begin extending payment terms in 2024. Businesses in Spain (20%) are the most likely to ask […]
The UK economy is “picking up steam”.
The latest CBI economic forecast points to encouraging signs that the UK economy is on track to gradually “pick up steam” over 2024 and 2025. After a strong start to the year, UK GDP growth is projected to rise to 1.0% in 2024. Momentum should then continue in 2025, with GDP growth anticipated to reach […]
UK corporate insolvency numbers reach a level not seen since the previous recession in 2008-9
Latest data from the Office for National Statistics indicates that corporate insolvencies rose by 18.4% in April 2024 (to 2,177) compared to March. This was an increase of 52.7% compared to pre-pandemic levels in April 2019. Tim Cooper, President of R3 and a Partner at Addleshaw Goddard LLP, commented that both the last year and […]
UK construction experienced more insolvencies than any other industry in the year to March 2024.
RSM UK has reported that the number of registered company insolvencies in England and Wales was 2,177 in April 2024, – 18% higher than in March 2024 and April 2023, respectively, and above levels seen during the pandemic. The construction industry experienced the highest number of insolvencies, reaching a total of 4,273. Commenting on the […]
18.7% of all UK-listed companies issued a profit warning over the last 12 months.
According to EY-Parthenon’s latest Profit Warnings report, although there has been a quarterly fall in the number of profit warnings, 18.7% of all UK-listed companies issued a profit warning over the past 12 months. Furthermore, EY-Parthenon’s research found that the number of companies warning for the first time in 12 months recently reached its highest […]
Atradius reports substantial rises in payment defaults in some UK sectors.
https://www.insurancebusinessmag.com/uk/news/breaking-news/atradius-reports-uk-payment-default-figures-in-q1-486216.aspx
Nexus is seeing an increased volume of overdue notifications and claims.
https://www.nexusunderwriting.com/en-gb/news/meet-your-underwriter-philip-oldfield
Trade credit insurers are supporting UK construction
https://www.abi.org.uk/globalassets/files/publications/public/trade-credit/the-trade-credit-insurers-guide—construction.pdf
Trade credit insurers do “all they can to offer crucial support to businesses”
BMF issues new guidance on trade credit insurance
Sluggish growth is delaying economic recovery in Emerging Europe and Central Asia.
The World Bank has published its latest Regional Economic Update for Europe and Central Asia region and warns that economic activity in the emerging and developing economies of the Europe and Central Asia region is likely to slow to 2.8% this year following substantial strengthening to 3.3% in 2023. However, a slower-than-expected recovery in key […]
The global recovery is steady but slow and differs by region.
The latest World Economic Outlook (WEO) forecasts that the world economy will continue growing at 3.2% during 2024 and 2025. This is an upward revision of 0.1% from the January 2024 WEO Update and 0.3% from the October 2023 WEO, although the pace of expansion remains low by historical standards. A slight acceleration for advanced […]
BCC warns of the impact that new customs checks and charges may have on UK businesses.
The British Chamber of Commerce (BCC) has expressed concern about the implications for small British businesses of new customs checks and charges that came into force on 30 April. The second phase of the UK’s Border Target Operating Model introduced charges of up to £145 for imports of plant and animal products, marking the first […]
The UK economy “is trapped” in a low-to-no growth state.
The BCC’s Quarterly Economic Survey indicates that most UK firms reported no improvement in investment levels, sales, or cashflow in the first quarter of 2024, with business confidence levels remaining mostly unchanged. The percentage of respondents reporting increased domestic sales also remained steady at 36% – the same level as in Q4. However, notable sectoral […]
The UK’s growth will be the second poorest of advanced economies in 2024.
The IMF’s latest World Economic Outlook (WEO) predicts that growth in the UK will rise from an estimated 0.1% in 2023 to 0.5% in 2024 as the lagged negative effects of high energy prices wane, then to 1.5% in 2025, as disinflation allows financial conditions to ease and real incomes to recover. This indicates a […]
Corporate insolvency in Scotland is at its highest level since the 2011-12 financial year.
The latest Scottish Insolvency Statistics for 2023-24 indicate that there were 1,168 corporate insolvencies in the year – an increase of 3% from 2022-2023’s figure of 1,132, 37% higher than 2021-2022’s figure (854), and 23% higher than pre-pandemic levels in 2019-2020 (948). Richard Bathgate, Chair of R3 in Scotland and Restructuring Partner at Johnston Carmichael, […]
Profit warnings are rising following a levelling out towards the end of last year, and the number of insolvencies continues to “skyrocket”.
The latest Infolink Gazette Quarterly Report for Q1 2024 has shown that profit warnings in Q1 2024 were up more than 20% (to 113 in Q1 2024), although they have reduced by 15% compared to the same period last year. The number of debtor-driven filings was also up by more than 25% to a total […]
Nearly one in five UK-listed companies issued a profit warning in the last 12 months.
A new EY-Parthenon Profit Warnings report reveals that the percentage of UK-listed companies issuing profit warnings over the last twelve months increased to 18.7%, which is 1% higher than in 2008 at the peak of the Global Financial Crisis. Additionally, by the end of the first quarter of 2024, thirty-nine companies had issued three or […]
Begbies Traynor’s ‘Red Flag Alert’ research highlights the rapid acceleration of financial distress over the past 12 months.
Currently 554,554 UK businesses are in ‘significant’ financial distress, marking a 30.8% rise compared to Q1 2023. This deterioration affects all twenty-two sectors covered by the research. Furthermore, levels of more severe ‘critical’ financial distress have surged by 20.1% compared to Q1 2023, impacting a total of 40,174 UK businesses. The situation is particularly concerning […]
Tokio Marine’s recent report on the UK’s economic conditions reveals significant challenges ahead.
Tokio Marine has published a report in which Ray Massey, Underwriting Director – Credit, examines the key factors impacting UK Economic Conditions. He notes that the UK slipped into recessionary territory in late 2023, with GDP growth projected to remain below 1% in 2024. The business failure rate also deteriorated sharply in 2023, with the […]
Company Watch has launched a new service, Payment Practises Data, to provide businesses with insights into the payment behaviours of the companies they work with.
The platform gathers data daily from around 9,155 of the UK’s largest companies reporting their payment practices (with this number set to grow), which is presented in “easily digestible” graphs showing the average days to pay and payment, as well as the payment percentage for all published years. Businesses can also view more information from […]