Business confidence falls

Many firms make use of trade credit insurance and other credit risk management provisions. Without having certain safety nets in place, it can be impossible for bosses to successfully protect their companies. This is particularly the case when economic conditions are tough, like they are at present.
Indeed, the latest Business Trends report produced by BDO revealed that confidence among the UK’s businesses has fallen and last month reached its lowest point this year.
The Optimism Index, which predicts performance for the two quarters ahead, declined to a six-month low. It dropped from 95.5 in May to 93.5 in June. This was the lowest reading since December 2011 and it took the index below the 95 mark that indicates growth.
BDO pointed out that manufacturing suffered particularly badly. Its Optimism Index fell from 96.5 in May to 83.8 last month. This was the lowest reading since March 2009.
Responding to the findings, BDO partner Peter Hemington said: “The figures point to a tough economic climate for the remainder of the year, possibly beyond. As the Eurozone continues to be blighted by instability, the UK government must take steps to ensure the UK economy is not at the mercy of the single market.
“Since half our export goods go to the Eurozone, it’s not surprising that turbulence there is denting longer-term growth prospects here.”
He went on to call for a “cohesive and outward-looking approach” to ensure that all possible avenues for growth are explored and he called on the government to collaborate and look for unexplored trade opportunities.
When conditions are as volatile as they are now, interest in trade credit insurance and other credit risk management solutions tends to be strong. After all, if firms are left out of pocket because of a late or missed payments, they can find themselves in serious trouble.
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