The global economy is expected to grow moderately this year.
Atradius’ latest Insolvency Outlook, September 2024, suggests that the global economy is expected to show a moderate expansion of 2.7% this year – remaining steady but with low growth by historical standards. Atradius predicts that, despite a relatively slow start to the year, the US economic outlook for 2024 remains positive – with a gradual […]
The UK manufacturing sector reports a uniformly disappointing set of results.
According to the CBI’s latest Industrial Trends Survey, UK manufacturing output volumes fell sharply in the three months to September and are expected to decline again in the three months to December. This is the first time expectations have been negative since November 2023. Output decreased in fourteen out of seventeen sub-sectors in the quarter, […]
Heavy discounting squeezes UK retailers’ margins further in the run-up to the ‘Golden Quarter’
According to BDO’s latest High Street Sales Tracker, total UK retail sales grew by +4.7% compared to September last year. This was largely driven by online sales growth in what was another disappointing result for high street stores in the lead-up to the so-called ‘Golden Quarter’. Online sales growth of +11.6% is likely a result […]
More than a quarter of businesses reported a decrease in their turnover in August 2024 compared with July 2024.
New data from the Office for National Statisttics (ONS) has found that 26% of trading businesses reported a decrease in their turnover in August 2024 compared with July 2024. This is an increase of 3% compared to last month and the highest proportion reported since January 2024; in contrast,14% reported an increase in their turnover, […]
Most UK trade sectors show a year-on-year increase in business distress, with construction at the top of the list of distressed sectors.
The latest Business Distress Index statistics from Real Business Rescue shows that construction remains the UK sector with the greatest number of businesses in significant financial distress at 89,824 in Q2 2024 vs 83,332 in Q4 2023, followed by Support Services (89,763), Real Estate & Property Services (65,919), Professional Services (50,683), General Retailers (42,992), and […]
Outstanding payments in 2024 are more common than at the height of the pandemic.
According to a new joint report from Cebr and iwoca, the number of UK suppliers offering repayment terms over sixty days to customers has surged from just 7% of suppliers in 2020 to 17% in 2024. In addition, 84% of suppliers say they have to adjust payment terms for business customers, nearly twice (46%) the […]
SME late payments have increased by 48%, with £348 billion in outstanding payments.
According to research from Aldermore’s SME Growth Index, over 3.6 million (72%) UK SMEs have some form of outstanding late payment from customers, leaving them £96,772 out of pocket on average. The total value of late payments has increased from the end of 2023, up 41% from £68,715. On average, SMEs are likely to wait […]
UK government crackdown on late payments.
The UK government has unveiled new measures to support small businesses and the self-employed by tackling “the scourge of late payments,” which, according to the Smart Data Foundry, costs SMEs £22,000 a year and, according to FSB research, leads to 50,000 business closures a year. The government will consult on “tough” new laws that will […]
Congratulations to
Allianz Trade won the Best Trade Credit Insurer award for the third consecutive year at the International Trade and Forfaiting Association (IFTA) Insurance Awards 2024.
Corporate bankruptcy numbers in the EU surged in the second quarter of 2024.
According to data published by Eurostat, corporate bankruptcy numbers in the European Union surged 3.1% in the second quarter of 2024 to reach a new high. Eurostat said this follows a 4.5% increase in bankruptcies in Q1 2024. However, while the overall number of bankruptcy declarations increased, the individual sectors of the economy behaved differently. […]
Economic recovery shifts to Europe and emerging markets amid slower US growth.
Dun & Bradstreet’s (D&B) latest Global Economic Outlook predicts that global GDP growth will accelerate from 2.5% this year to 2.8% in 2025. In Europe, the good start to the year continued in Q2 2024: GDP grew 0.3% q/q in the Eurozone and the EU, following 0.3% growth in Q1. Ireland (+1.2%), Spain (+0.8%), and […]
One in five listed corporates pay their suppliers after ninety days globally.
ICISA Insider has published an article in which Maxime Lemerle, Lead Advisor for Insolvency Research Allianz Trade, advises that globally, 47% of companies posted payment delays above 60 days of turnover at the end of Q1 2024. In Europe, this share (45%) was close to the global average, while it was above in Asia (51%) […]
Almost 70% of all European countries will be above pre-COVID bankruptcy levels by the end of this year.
Allianz Trade has advised that nearly 70% of all countries will be above pre-pandemic bankruptcy levels by the end of this year, and bankruptcy levels are, in some instances, much higher than anticipated. For example, earlier this year in Belgium, Allianz Trade predicted a bankruptcy increase of +6% for 2024. However, halfway through this year, […]
CFOs of the UK’s largest firms are more optimistic about their business prospects.
According to Deloitte’s latest CFO survey, CFOs of the UK’s largest firms are more optimistic about prospects for their businesses following the election. Sentiment has risen for the fourth consecutive quarter, with a net 23% of finance leaders more positive about their businesses’ financial prospects than in the previous edition. Corporate risk appetite also saw […]
UK SME exporters’ overseas sales are flatlining.
The British Chamber of Commerce’s (BCC) Trade Confidence Outlook for Q2 2024 shows that most UK SME exporters’ overseas sales are flatlining. Over half of all UK SME exporters (52%) saw no change in overseas sales, and 21% reported a decrease. Just over a quarter of exporting SME firms (27%) saw their overseas sales rise […]
UK company insolvencies in July 2024 were 2% higher than in June.
New data from Creditsafe has found that 2,443 companies in the UK became insolvent in July 2024 – a 2% increase compared to June but 2% lower than the same month in 2023. 16% of insolvencies in July came from within the UK construction sector, with the sector accounting for 17% of all company insolvencies […]
July 2024’s insolvency figures indicate a 52.2% increase in insolvencies compared to pre-pandemic levels.
The latest data from the Insolvency Service has found that corporate insolvencies in England and Wales decreased by 7.3% in July 2024 to 2,191 but increased by 15.9% compared to July 2023’s figure of 1,890. Compared to pre-pandemic levels in July 2019 (11,440), July 2024’s figures indicate a 52.2% increase in insolvencies. President of R3, […]
UK corporate insolvencies are expected to rise this year – despite already reaching a three-decade high in 2023
PwC UK’s latest Economic Outlook reported that the UK recorded nearly £27,000 in corporate insolvencies in 2023 – the highest level for over three decades and surpassing volumes during the Great Financial Crisis. PwC also expects corporate insolvency volumes to continue rising for a short period and notes that research by the Bank of England suggests that […]
Over 600,000 UK firms face financial strain amidst a challenging economic climate.
The latest Begbies Traynor “Red Flag Alert” research reveals that the number of UK companies in ‘significant’ financial distress jumped by nearly 10% in Q2 2024 to 601,950 businesses. This marked acceleration was driven significantly by the Travel & Tourism (+20.1%), Hotels & Accommodation (+16.4%) and Bars & Restaurants (+12.2%) sectors. Also, during Q2, ‘critical’ […]
Small UK businesses are experiencing the longest late payment times since the pandemic.
Late payments to UK small businesses surged over the three months from April to June, with payments delayed by more than a week on average, according to Xero Small Business Insights (XSBI) data. Payments to small businesses were, on average, 7.3 days late between April and June. This is an increase of 1.8 days compared […]
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 […]