Market-listed SMEs’ mood of gloom over prospects for the economy

PUBLICLY QUOTED growth companies are gloomier on prospects for the UK economy than at any time in the last five years, according to a new study.

Research carried out for the Quoted Companies Alliance, the independent membership organisation that champions the interests of small to mid-size quoted companies, found market-listed SMEs had an optimism rating of 45.8 last month. A score of 50 is neutral and 100 is classified as very optimistic. This compares with a score of 57.5 recorded last May.

The findings are contained in the latest QCA/YouGov Sentiment Index, which has tracked the mood of businesses since 2011. Companies were most optimistic in January 2014, scoring 69.3 and remaining largely confident about the UK economy until May 2017.

Despite this dip in optimism over the economy as a whole, small to mid-sized quoted companies – most of them traded on the main London Stock Exchange, AIM or NEX Exchange – were considerably more bullish on their own prospects, with a 67.7 optimism rating, slightly down on 69.6 in May.

Tim Ward, chief executive of the Quoted Companies Alliance, said: “We are seeing continued but cautious shortterm optimism of small and mid-size quoted companies towards their own business prospects.

“Intentions over raising capital have fallen significantly, perhaps indicating that their pessimism about the UK economy is having a real effect on their long-term planning.”

Oliver Rowe, director of YouGov PLC, added yesterday: “These findings echo many of our other surveys.”