confidence remains steady for Print & Packaging

Business sentiment across all key sectors – bar Print & Packaginghas continued to subside – although not as dramatically as was seen between March and April last year.

Our data reveals that over the past year, positivity has fallen significantly from record highs to levels not seen since the first lockdown – and what we are seeing for the first time is the sectors aligning around a smaller spread of figures than we usually see; it’s clear the pain of the rising cost of doing business, recession, interest rate rises, energy prices and inflation is being felt across all industries.

According to our research, Print & Packaging business owners’ top five concerns were:

1: Energy costs

2: Inflation

3: Interest rates 4: Materials supply 5: Cash flow

Skills shortages and energy costs were seen as the largest inhibitors of growth for the UK’s Print & Packaging SMEs. This runs counter to other sectors, whose primary concern is the cost of energy.

Business sentiment index – December 2022

How the sectors have fared

The Print & Packaging sector BSI remained very consistent and did not see the level of falls suffered by other sectors.

Appetite for investment

On a positive note, over four fifths of Print & Packaging firms are still looking to seek funding for investment in the next 12 months, up from July’s 79%.

Q Does your business plan to seek funding for business investment in the next 12 months?

Missed opportunities

The number of Print & Packaging companies missing business opportunities due to a lack of available finance was the highest of the sectors tracked, at 51%. With pressure on cash flow, most ambitious businesses rely on additional finance to enable them to invest in growth.

QHave you missed a business opportunity in the last 12 months, due to lack of available finance?

Economic outlook

Business owners are, unsurprisingly, more negative than positive about the macro-economic outlook and it’s this indicator that has contributed most to the decline in the BSI.

Predicted business performance

Predictions about future business performance is largely unchanged, except in Print & Packaging, where expansion expectations nearly halved from 34% in July 2022 to just 19% in December of the same year.

Score calculation

QIn general, how do you expect your business to perform over the next 12 months?

The BSI is based on the views of 900 business owners and senior members of the UK’s business community and calculated from data charting their:

• Appetite for investment in their business in the coming 12 months

• Access to finance and whether they’ve missed a business opportunity through lack of available finance

• Views about the UK’s economic outlook

• Thoughts on their likely performance in the coming 12 months