The UK economy looks likely to avoid recession this year, but inflation, higher financing costs and a sharp rise in insolvencies continue to weigh heavily on UK businesses.
Mortgage rates are high and home ownership seems a mere dream for many. Meanwhile, the firms building new homes and working on major construction and infrastructure projects face increasing pressures themselves.
UK exporters face a period of heightened credit risk
The Allianz Trade Global Survey 2023 reveals the mood of UK exporters. Despite a challenging trade environment and growing fears of non-payment, UK companies remain optimistic about export growth.
Small and medium-sized enterprises (SMEs) are feeling the effects of late payments. This, compounded by the increase in insolvencies year-on-year makes for a nervy UK business environment.
Insolvencies Sector Update Hospitality, Travel, Transport June 2023
Overall insolvencies in England and Wales for the second quarter of 2023 were 6,393, a 7% increase on the first quarter. This was also a 17% increase on the same second quarter of 2022. For the first half of 2023, the number of insolvencies were 12,349, is a 15% increase on H1 2022.
Productivity growth has been poor in most advanced economies since the 2008 global financial crisis (GFC). The UK has underperformed most major economies since then, and is at its worst recorded level.
Retail insolvencies up in 2022, but will 2023 be brighter?
Consumers continued to tighten their purse strings in the run up to Q4 2022, further increasing the risk of retail insolvencies. But could 2023 see a turnaround for the retail sector?
Firms of all sizes face a tough year as the UK economy is set to shrink in 2023. Use this time to protect your company, and plan your business strategy in recession.
