As we are hopefully now at the start of the end for Covid related business activity disruption, the accounts of local SME’s are now starting to show part of the damage they have experienced through the lock-downs and associated restrictive measures. The overall effect upon turnover for the year-ends of 2020 has not been as bad as I expected; with the median growth amongst our client base being -3%, although early 2021 year ends are showing a reduction to -9%.
However, there must be pent up demand and as consumers start spending again, including extra money they have saved during the lock-downs, many commentators are expecting a quick bounce back. Already evident in China, where it is referred to as ‘revenge spending’, this is probably going to help products which are larger discretionary spends, such as construction, furniture, cars, luxury goods, leisure and holidays.
As we enter a changed world, markets that reflect the “new normal” should also benefit. These include areas like green/environmental, home-working, staycations, healthcare and home delivery.
Blog entry by: Ian Piper