How are businesses coping now menaced by another major crisis after recently recovering from a crippling two years of the COVID-19 pandemic?
Data from the Savanta Business Tracker shows that almost half of UK businesses (47%) are currently spending more cautiously. Larger businesses (£1m+ revenue) appear to be the most cautious
(53%) compared to smaller businesses (up to £1m revenue) (43%).
Overall, 4 in 10 businesses have made expenditure cuts, with 13% saying they have cut a significant amount. Whilst larger businesses say they are being more cautious, it is smaller businesses that are making more significant cuts (15% vs 10% for larger businesses).
Demand from their customers is on the decline also since the rise in business costs and the cost-of-living crisis. This decline in demand appears to be increasing (52% July to 55% August) and is affecting smaller businesses more (58% vs 52% larger businesses).
Savanta has used two of its flagship surveys, UK Business Tracker and MarketVue, to better understand the business sentiment on this very important issue.
For more information please contact Helen Davey, Associate Director, Financial Services at [email protected].
