The CMI, which is generated by the Chartered Institute of Credit Management (CICM), has shown that confidence has fallen for the second quarter in a row, although the pace of decline has slowed. Volatility in the financial markets in the run up to and the in the wake of the EU referendum has been seen as a large contributing factor to the results.
The index looks at business confidence in both manufacturing and the services sector. The main index, which is a combination of the two industries, stood at 56.1 (out of 100), a fall of half a point on the previous quarter. The separate manufacturing index fell by 1.8 points to 57.2.
Sponsored by credit risk management specialists Tinubu Square, the CBI measures nationwide levels of credit being sought and granted. It acts as an indicator of the amount of business actually being conducted.
Commenting, Philip King, chief executive of the CICM, said: : “It will be interesting to see what effect the Bank of England’s cut in the base interest rate to 0.25% and further quantitative easing will have on this volatility and confidence.”
Michael Feldwick, Head of Tinubu in the UK, added: “In turbulent times the processes companies have in place for making credit decisions and managing risk are critically important. Why expose yourself to even more risk than that in the broader economic environment? Good processes, technology and training all help to lower overall corporate risk, so now is the time to ensure all are in good order.”
