Member Article

Can SMEs Weather Brexit Uncertainty?

The latest SME Health Check Index from CYBG, owners of Clydesdale and Yorkshire Bank, suggests that evaporating confidence and restricted GDP growth, amidst economic uncertainty, are hitting Britain’s small-to-medium sized businesses.

Despite an upturn in the overall Index score (out of 100), up 4.9 points to 54.9, declines were registered across four UK regions. Q4 2018 recorded the lowest levels of confidence and GDP growth (declined to 0.2%) since the Health Check Index began in 2014.

However, there were positive motions recorded throughout the Index, compiled alongside Cebr, as business cost inflation fell by 0.2% to 2.8%. Also, the annual rate of growth in the value of SME’s outstanding loan balances entered positive territory for the first time since 2013.

The main regions affected this quarter were the East Midlands and the East of England, where in both cases confidence played a key role. Smaller declines, aligned with the GDP findings, were recorded in Scotland and Yorkshire and the Humber.

Yet, the score for the North West rose considerably for the second consecutive quarter, driven by a 31 point increase in their employment indicator. Both the South East and North East saw strong gains thanks to increases in employment and lending. There were also less sizeable increases for the West Midlands, South West, Wales and London.

Making up 99.9% of the UK’s businesses and over half of the workforce, SME’s contribution to the UK economy is impossible to underestimate.

This was posted in Bdaily's Members' News section by Broadcast Exchange .