Over the past year the pandemic has thrown drastic obstacles in the way for UK businesses. With a current total business confidence score of 102 out of a total of 190, these figures show that business still feel uncertain at present – according to the Business Confidence Report by Nexus Global.
However looking back on last years business confidence report by Nexus Global, business confidence levels are up by 9.7% since when the UK was in the first national lockdown. The report shows that last year’s business confidence was at 92.9 out of a total of 190.
Nexus Global surveyed senior managers in businesses across the UK to determine how confident they feel at present regarding the current economic climate. According to the findings, businesses are most assured about the overall health of their business, yet least confident about the health of the country’s economy.
To determine the figures, respondents were asked (on a scale of 1-10) how confident they feel at present regarding the following aspects:
|Percentage increase /
decrease since last year
|Overall health of the business||6.4||+21%|
|Happiness of employees||6.3||+20%|
|Expectation of next year's
revenue to increase
|Not having to make redundancies||6.2||+24%|
|Expansion of products / services||6.1||+23%|
|Launching new products / services||6.1||+23%|
|Positive cash flow situation||6.1||+21%|
|Investing in areas of business||6||+21%|
|Increase in sales / clients||5.9||+20%|
|Increase financial investments||5.9||+23%|
|Overall health of the local economy||5.6||+24%|
|Hiring new employees||5.6||+22%|
|Increase wages across the business||5.6||+28%|
|Giving bonuses to employees||5.5||+26%|
|Overall health of the country's economy||5.4||+22%|
- Business confidence in the UK has risen by 9.7% since last year (May 2020).
- UK businesses are most assured about the overall health of their business, yet unsurprisingly least assured about the overall health of the country’s economy.
- Sectors hardest hit by the pandemic are the least confident including travel, creative arts and culture.
- Law is the most confident sector in the UK closely followed by finance.
Travel is the least confident sector in the UK
Scoring just 96.7 out of 190, the travel industry have been revealed as the least confident sector in the UK. However it is promising to see that confidence levels are up by 38% since last year (May 2020) according to the report. With lockdown measures being eased over the coming months, the travel sector should continue to see confidence levels growing.
Law has come out on top as the most confident sector, with a score of 123.9 out of 190. The Law sector has seen confidence levels grow by 12% since last year (May 2020) The finance industry came a close second, at 122.1.
East Midlands is the most confident UK region
From a regional point of view, businesses in the East Midlands are the most confident about the current climate, scoring 121.2 out of 190, nearly 10 points over the UK average. Whereas businesses in Wales are the least confident by scoring just 94.5.
Commenting on the report findings, John Westwood, Managing Director, says: “A rise in confidence levels among UK businesses is an encouraging sign and paints a much more positive forecast for the future after such an unsettling and turbulent period over the past 12 months.
Looking forward, business confidence levels will be a key factor to influence the pace of consumer spending once lockdown measures ease. This change in behaviour will need to see businesses adapt if they stand a chance of seeing growth.”
For more information follow the link to click through to individual sectors to discover more in-depth information on the current climate and future predictions. https://www.nexus-global.net/business-confidence-report/