The UEAPME’s SME Business Climate Index has never been as high as it is now, despite the fact that data on turnover, jobs and prices are not as positive as forecast, according to the results published for the first half of 2018, on Wednesday 21 March, ahead of the Tripartite Social Summit.
With 81.6 points, the SME Business Climate Index has reached an unprecedented level, according to Ulrike Rabmer-Koller, the President of the UEAPME, during a briefing. The causes are manifold and economic growth is one of them. Above all, the fall in unemployment, combined with an increase in wages, has helped boost domestic demand, which has significantly benefitted SMEs. These rates differ significantly, however, according to the different geographical areas and sectors.
Therefore, the index stands at 77.7 points for the “South and Periphery” (Croatia, Cyprus, Greece, Ireland, Italy, Malta, Portugal, Slovenia and Spain) and 83.2 points for the "North and Centre” (the other member states). It is 84.4 points for the Eurozone and 75.1 points for the rest of the Union. Nonetheless, this rate fell to 69.3 points for the so-called “Brexit” Group (United Kingdom, Ireland and Denmark).
This optimism seems somewhat misplaced given that the expectations of SMEs during the first half 2017 in terms of turnover, jobs and prices were not met, according to the study.
Ms Rabmer-Koller explained that the economic recovery is not the same in every sector. The manufacturing and services sectors are doing much better than construction and staff services. The former have been driven forward by the global economy, while the latter are dependent on domestic demand.
Ms Rabmer-Koller also highlighted another phenomenon: for the first time, the main concern of SMEs is skill shortages and no longer access to finance.
During the publication of the index last October, Brexit and related uncertainties were the main source of SMEs' concerns (see EUROPE 11886).
The link to the study is as follows: https://bit.ly/2G2p8QG. (Original version in French by Pascal Hansens)