Published: 13/03/24
Written by: Steve Stokes
Although at Navigate we’re excited about the year ahead, we enter 2024 with continuing uncertainty...
The upcoming elections in both the UK and USA, the ongoing war in Ukraine, and the conflict in Palestine, all of which may have a direct or indirect impact on a UK economy that already finds itself on an uncertain path:
INFLATION
Whilst inflation has been dropping steadily from its peak in summer 2023, there are elements that remain sticky, however, an anticipated drop in the energy price cap by 10-15% in April should help to bring the headline figure nearer the Bank of England’s 2% target and combined with weakening growth, is likely to lead to rate cuts in the coming months.
RECESSION
Last month it was confirmed the UK entered recession in the second half of 2023, however, the labour market has, to date anyway, remained extremely resilient with unemployment contained and real term wage growth in recent months.
INSOLVENCIES
Insolvencies increased significantly during 2023, especially liquidations, and this trend looks like it will continue throughout 2024, however, there have still been some pockets of positivity. An example of this is UK manufacturing body, Make UK’s recent survey of the UKs 200+ leading manufacturers indicating an increased confidence in the sector, with many believing we are becoming more competitive than many European competitors and a potential opportunity for the sector to increase its contribution towards total UK GDP.
I’m sure you’ll agree an uncertain, confusing, sometimes contradictory, picture!
At Navigate though, we continue to assist clients at various stages of the economic and business life cycles, across a variety of sectors, by providing the most appropriate funding solutions to help them through any opportunities or challenges they are facing.