2022
9
UK B2B Economic Outlook – Spring 2022
2022-03-15T03:03:15+00:00
OX1100833
1495
148790
[{"name":"Business and Industrial","url":"https:\/\/store.mintel.com\/industries\/business-industrial"},{"name":"Finance","url":"https:\/\/store.mintel.com\/industries\/finance"}]
Report
en_GB
“With economic growth likely to weaken in comparison to 2021 and inflationary pressures affecting businesses, both in terms of costs and staff recruitment, it is vital that strategies are in…

UK B2B Economic Outlook – Spring 2022

£ 1,495 (Excl.Tax)

Description

“With economic growth likely to weaken in comparison to 2021 and inflationary pressures affecting businesses, both in terms of costs and staff recruitment, it is vital that strategies are in place in order to be able to ride out yet more market disturbances.”
– Lewis Cone, Senior B2B Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Economic overview
    • Business health
    • Special focus: B2B finance
    • What’s next?
  2. Economic Overview

    • UK economy reaches pre-pandemic level at the end of 2021 but Omicron is likely to have dampened growth in Q1 2022
      • Figure 1: Annual GDP growth rate, 2017-21, (% change)
    • Bank rate rises for the second time in quick succession as inflationary pressures mount
      • Figure 2: Bank rate, by date of adjustment, 2008-22, (%)
    • CPI 12-month rate reaches three-decade high and is likely to rise further…
      • Figure 3: Consumer Price Index, 2021-22, (12-month rate, %)
    • …whilst growth in real earnings fails to keep pace
      • Figure 4: Real average weekly earnings, total pay, 2021, (% monthly change year-on-year, seasonally adjusted)
  3. Business Health

    • Over a quarter of businesses report a fall in turnover compared with normal expectations…
      • Figure 5: UK business turnover, at the start of 2021, by business sector, (£ million)
      • Figure 6: finance performance of UK businesses, July 2020 vs July 2021 vs January 2022, (% of respondents)
    • …whilst company insolvencies begin to rise as government support schemes end
      • Figure 7: Underlying company insolvencies in England and Wales, Q3 2019-Q4 2021, (units, seasonally adjusted)
    • Private sector profitability stabilises but business investment face challenges
      • Figure 8: UK PNFCs net rate of return, Q3 2019-Q3 2021, (% return)
      • Figure 9: UK total business investment, Q4 2019-Q4 2021, (chained volume measures and not seasonally-adjusted, £ billion)
  4. Special Focus: B2B Finance

    • Net lending remained positive in 2021 but at a significantly lower level than the post-financial crisis high seen in 2020
      • Figure 10: UK MFIs’ net loans to non-financial businesses, Q1 2020-Q4 2021, by size of business, (£ million, not seasonally adjusted)
    • Credit availability and demand rose for large businesses but remained subdued for SMEs in 2021
      • Figure 11: Availability of corporate credit to PNFCs in the past three months, Q4 2019-Q4 2021, by business size, (net percentage balance)
      • Figure 12: Demand for corporate credit by PNFCs in the past three months, Q4 2019-Q4 2021, by business size, (net percentage balance)
    • Write-offs on loans to PNFCs rose by 22% in 2021
      • Figure 13: Write offs of loans to PNFCs from banks and building societies, Q3 2019-Q4 2021, (£ million, not seasonally adjusted)
  5. What’s Next?

    • Business confidence falls from decade-high level but remains high
      • Figure 14: Business confidence index, Q4 2020-Q1 2022, (index figure)
    • General consensus implies slower economic growth with inflationary pressures and the conflict in Ukraine driving uncertainty
    • Purchasing Managers’ Index Surveys
    • Inflationary pressures unlikely to be reduced by interest rate rises alone with Russia-Ukraine conflict adding great uncertainty
    • FCA runs further financial resilience survey
  6. Appendix – Abbreviations and References

    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch