A new report shows that confidence in the UK economy’s prospects among small and mid-cap companies has stalled, sinking back to levels last seen in September 2011.
The QCA/BDO Small & Mid-Cap Sentiment Index – conducted by YouGov on behalf of accountants BDO and the independent membership organisation the Quoted Companies Alliance (QCA) – used a 0-100 scale where zero is ‘very pessimistic’ and 100 is ‘very optimistic’.
Its latest figures show that confidence dropped from 47.3 in April 2012 to 38.4 in June 2012.
A striking 83% believe the equity markets are either having no impact or are actually hindering their development. The biggest problem, cited by 62% of companies, was a lack of liquidity. 69% want to raise the amount of share capital they can issue without having to provide a prospectus.
Partner at BDO, Scott Knight, commented: “We have re-entered recession and the instability in the eurozone is ongoing, so a confidence blip is to be expected. But there is a level of malaise regarding the equity markets and liquidity that is a cause for concern.”