UK SME Confidence Hit by Triple-Whammy of Double-Dip Recession, Global Economic Worries and Access to Credit

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UK SME Confidence Hit by Triple-Whammy of Double-Dip Recession, Global Economic Worries and Access to Credit

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UK SME Confidence Hit by Triple-Whammy of Double-Dip Recession, Global Economic Worries and Access to Credit PR Newswire LONDON, June 12, 2012 LONDON, June 12, 2012 /PRNewswire/ -- Confidence falls in May following news of a double-dip recession 81 percent of SMEs see no improvement in credit availability Little boost expected from the Olympic Games Exports to emerging markets offer a glimmer of hope The confidence of Britain's small and medium sized importers and exporters has nosedived. The latest data from the Western Union Business Solutions International Trade Monitor (ITM) released today revealed UK SME confidence has re-entered negative levels. In the period March to May 2012 rising SME confidence in the UK economy dropped from 58 percent in April (the highest figure recorded since June 2011) to 49 percent in May. The fall followed the announcement that the UK is in a double-dip recession. SME importers and exporters in London were the hardest hit, with their confidence dropping from 60 percent to 40 percent over the same period. Neil Graham, Managing Director, UK, for Western Union Business Solutions, says: "SME confidence has dropped from the cautious rebound we saw last quarter. News of the UK entering a double-dip recession was a big blow; London confidence in particular has taken a bath. "The fall in confidence levels back to negative territory is very worrying for the UK economy.

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Publié par	western-union-business-solutions
Nombre de lectures	14
Langue	English

Extrait

UK SME Confidence Hit by Triple-Whammy of

Double-Dip Recession, Global Economic

Worries and Access to Credit

PR Newswire

LONDON, June 12, 2012

LONDON

June 12, 2012

/PRNewswire/ --

Confidence falls in May following news of a double-dip recession

81 percent of SMEs see no improvement in credit availability

Little boost expected from the Olympic Games

Exports to emerging markets offer a glimmer of hope

The confidence of

Britain's

small and medium sized importers and exporters

has nosedived. The latest data from the

Western Union Business

Solutions International Trade Monitor

(ITM) released today revealed UK

SME confidence has re-entered negative levels.

In the period March to

May 2012

rising SME confidence in the UK economy

dropped from 58 percent in April (the highest figure recorded since

June 2011

)

to 49 percent in May. The fall followed the announcement that the UK is in a

double-dip recession. SME importers and exporters in

London

were the hardest

hit, with their confidence dropping from 60 percent to 40 percent over the

same period.

Neil Graham, Managing Director, UK, for Western Union Business

Solutions, says:

"SME confidence has dropped from the cautious rebound we saw last quarter.

News of the UK entering a double-dip recession was a big blow;

London

confidence in particular has taken a bath.

"The fall in confidence levels back to negative territory is very worrying for the

UK economy. SMEs have to contend with the prospect of a return to recession

at home and increasingly turbulent markets abroad."

Credit woes

Access to credit continued to add to SME worries; the ITM revealed that 81

percent of SMEs have seen no improvement in credit availability. The launch of

the Government's National Loan Guarantee Scheme seems to have made little

impact. 52 percent of SMEs are aware of the programme, an improvement of

11 percent over awareness of Project Merlin last quarter. 77 percent believe

that it will make no difference in their ability to obtain credit.

Additionally, only 17 percent of SMEs believe credit in general is easier to obtain

now than it was a year ago while their likelihood to renew or request lines of

credit has fallen to ten percent - the lowest figure recorded thus far.

Graham continues:

"The continued lack of credit available to small businesses

is a real challenge. Despite the Government's efforts, over 80 percent of SMEs

haven't noticed an improvement in credit over the last year - a year that has

not been noted for great access to credit in the first place. Liquidity remains a

big challenge for small businesses as their cash flow continues to dry up."

Hopes of Olympic boost fail to materialize

SMEs do not expect to benefit from the Olympic Games, with only 15 percent

believing they will have a positive impact on their business. 67 percent believe

they will have no impact, with eight percent expecting a negative one. SMEs in

London

were slightly more optimistic, with 20 percent indicating the Games

would have a positive impact on their business. 60 percent of the capital's SMEs

expect no impact, 11 percent a negative one.

Exporters with customers in emerging economies

increase

Despite falling confidence in trade conditions there are signs the Government's

efforts to boost exports are yielding results, particularly in the manufacturing

and wholesale industries.

Exporters with customers in

Africa

rose six percent compared to the previous

quarter and those with customers in

India

increased by four percent, indicating

exporters are looking for opportunities outside of the eurozone. In addition to

this, exporters with customers in

Brazil

and other countries in

South America

recorded a three percent rise.

Graham continues:

"The Government's efforts to boost exports are welcome

and seem to be yielding positive results. With continuing economic turmoil on

the cards, however, our customers are looking for ways to protect themselves

as much as possible. It's no wonder that they are feeling anxious. The situation

Europe

is precarious and what happens there will of course impact the global

economy."

Notes to Editors:

About Western Union Business Solutions

Western Union Business Solutions enables companies of all sizes to send and

receive international payments and manage foreign exchange,

creating

unique solutions tailored to suit their FX needs.

It is a business unit of

the Western Union Company (NYSE: WU), a leading nonbank provider of cross

border payments, which operates its Business Solutions services through locally

licensed affiliates in 25 countries. Supported by a network of trading offices,

strategic banking relationships

and a global clearing network,

businesses

can send cross-border payments in more than 135 currencies.

Western Union Business Solutions services in the UK are provided by Custom

House Financial (UK) Limited or Travelex Global Business Payments. Custom

House Financial (UK) Limited (registered in

England

, Company Number

04380026, Registered Office Address: 2nd Floor, 12 Appold Street,

London

EC2A 2AW) is authorised by the Financial Services Authority under the Payment

Services Regulations 2009 (Register Reference: 517165) for the provision of

payment services and is registered as an MSB with HM Revenue & Customs

(Registered No: 12140130).

Travelex Global Business Payments Limited

(registered in

England

, Company Number 02854737, Registered Office Address:

65 Kingsway,

London

, WC2B 6TD) is authorised by the Financial Services

Authority under the Payment Services Regulations 2009 (Register Reference:

536611) for the provision of payment services and is registered as an MSB with

HM Revenue & Customs (Registered No: 12122416).

"Travelex" is a registered trademark of Travellers Exchange Corporation

Limited and is used by Travelex Global Business Payments Limited and its

affiliates under license

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment

services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union

Business Solutions branded payment services, Western Union provides

consumers and businesses with fast, reliable and convenient ways to send and

receive money around the world, to send payments and to purchase money

orders. As of

April 24, 2012

, the Western Union, Vigo and Orlandi Valuta

branded services were offered through a combined network of approximately

500,000 agent locations in 200 countries and territories. In 2011, The Western

Union Company completed 226 million consumer-to-consumer transactions

worldwide, moving

$81 billion

of principal between consumers, and 425 million

business payments. For more information, visit http://www.westernunion.com.

Jennifer Berlin

Western Union Business Solutions

T: +44(0)208-415-4204

E: Jennifer.Berlin@Travelex.com

Lauren Franze/George Parrett

Redleaf Polhill

T: +44(0)20-7566-6750

E: wubs@redleafpolhill.com

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