“Over recent months, inflationary pressures have become widespread, pushing central banks to rise interest rates to levels unseen for more than a decade, both globally and in the UK. Despite fiscal support from the UK government, the squeeze on incomes from inflation and tighter financial conditions have already started to temper demand and hinder investments in Q3 2022 and will continue to do so in 2023. After the £55bn fiscal tightening announced at the Autumn Budget, the UK macroeconomic outlook will deteriorate further.
“The coming months will be difficult; it will be critical for businesses to stress test their vulnerability to policy changes, as well as have a firm grasp on their supply chain and be able to identify cash-flow issues. One thing that is often undervalued is that there’s so much readily available data and insights to help businesses gain a comprehensive understanding of financial risks and operational challenges in the meantime.”
Tommaso Aquilante, Associate Director of Economic Research at Dun and Bradstreet