The current pandemic has thrown drastic obstacles in the way for UK businesses. With the finance sector having a total business confidence score of 104.68 out of a total of 190, these figures show just how uncertain businesses feel at present – according to a new, Business Confidence Report by Nexus Global.
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, financial businesses are most assured about business competition yet least assured about giving bonuses to employees.
To determine the figures, senior managers in the finance sector were asked (on a scale of 1-10) how confident they feel at present regarding the following aspects:
The finance sector is the third most confident in the UK
Scoring 104.68 overall, finance is the third most confident sector after law and science and pharmaceuticals, in the business confidence report.
The industry is most confident about business competition, the overall health of their company, and business growth.
In fact, one area in the sector that has been faring well during the current climate is fintech (1), these companies are used to remote working conditions, and a high digital demand. With many of these firms currently offering businesses and consumers their products or services for free or creating new products that solve specific current needs; they should continue to thrive when the economy recovers.
However, confidence levels are lower when it comes to giving bonuses to employees, hiring new members of staff, and increasing wages across the business. This isn’t surprising, given the effect COVID-19 has had on the sector. Margins will be squeezed even further – specifically in banking – with payment holidays being granted and potential borrowers defaulting on loans.
Please see the table below to see where the finance sector ranked compared to other sectors:
Commenting on the report findings, John Westwood, Managing Director, says: “It is by no surprise to see business confidence at a low during such an unsettling and turbulent period, during which the UK economy has suffered its worst-ever decline.
Looking forward, business confidence levels will be a key factor to influence the pace of consumer spending once lock-down measures continue to ease. This change in behaviour will need to see businesses adapt if they stand a chance of seeing growth.”