The UK and EU have agreed a new post-Brexit reset deal which covers trade, fishing, defence, energy and strengthening ties in a number of policy areas.
It comes after the UK and USA agreed a 10% tariff rate rather than the 20% Trump had threatened.
However, the current picture for UK business is still pretty bleak.
Data from the Insolvency Service shows that registered company insolvencies hit 2,053 in April, marking a 3% increase on March’s total although it was a 5% decline compared to April 2024.
British factories have reported a sharp fall in orders and output this month, underlining how the economy appears to be stumbling.
The CBI’s latest Industrial Trends report, just released, shows that manufacturing output volumes fell in the three months to May, at the joint-steepest pace since August 2020.
Total order books weakened marginally in May, relative to April, while export order books improved from a sharply negative reading last month. But both total and export order books remain well below their long-run averages.
UK borrowing has risen more than expected in April and it remains to be seen what the Bank of England will do next about interest rates.
The trade deals will need to feed through into movement on the economy before the picture becomes clearer, but hopefully we should see some improvement towards the end of the year.
In the meantime businesses should stay focused on their balance sheets and cash flow.
Download our free cash management tool here to help you https://lnkd.in/ee3pfuGa
And if you want to talk over your current business plan or the likely consequences of insolvency we’re happy to help.