bluedesign - Fotolia

Most SMEs yet to feel any Brexit impact

The channel's key customer base is still yet to report any major fallout from the decision to leave the EU

It only took a few hours after the vote to leave the EU had been cast for the economists to issue warnings that customers would pause investments and postpone growth plans.

In the ten weeks that have followed the evidence of an economic apocolypse has been thin on the ground and when it comes to the channel's key SME customer base there might even be more reasons to be optimistic.

Last week the manufacturing sector reported the life was slightly better than many had expected following Brexit and that has been followed up with figures from Markit/CIPS indicating the summer was a strong one for the services sector.

The services sector has now returned to pre-Brexit levels, giving some solace to those hoping that the much feared recession will not be a certianty.

"A record rise in the services Purchasing Managers'Index adds to the encouraging news seen in the manufacturing and construction sectors in August to suggest that an imminent recession will be avoided," said Chris Williamson, chief business economist at Markit.

There has also been some research from Close Brothers Business Barometer, which looked at whether or not SMEs felt there had been an impact on their business following the decision to leave the EU.

More than half (56%) said that they had not seen any impact on their levels of business in the latest quarterly survey.

Many are still waiting to see what will happen so it is too early to conclude that there has not been any negative impact from Brexit, and the process to leave has not even been started in earnest, but it does provide more reasons to be calm about the current business landscape.

“It’s clear that the majority of UK SMEs are yet to feel any real and tangible effect from Brexit,” said Neil Davies, CEO, Close Brothers Asset Finance.

“It’s interesting to note that of those who have been impacted, it’s pretty much split down the middle in terms of those who have been positively and detrimentally affected," he added
“There is also a real regional difference, with businesses in London feeling the most exposed.”

Read more on Finance and Credit