Hospitality sector recovering well with consistent week-on-week growth
Article Date: 2020-08-20
The hospitality sector is recovering well since lock-down was lifted with consistent week-on-week growth, according to the latest Barclaycard Payments’ quarterly SME Barometer.
Overall, the average daily transaction value has risen by 60% compared with the second quarter.
However, transactions for the first half of the third quarter remain 13% behind the same point last year.
The data also showed SMEs have exceeded their revenue predictions for the second quarter.
At the start of April, SMEs predicted a 28% decline for the quarter, but now those figures are in the books, the research revealed the average reported loss of 14% was less severe than predicted.
Stronger-than-expected second-quarter performance has led to a boost in optimism, with index scores jumping from 79 out of a possible 200 points at the start of the second quarter, to 95 points at the start of the third quarter.
This is also reflected in business outlook – 36% of SMEs report a positive outlook for their own business this quarter, up from 21% in the second quarter.
The percentage of SMEs reporting coronavirus negatively impacted their business has dropped this quarter, falling from 82% in the second quarter to 74% this quarter.
While the pandemic continues to cause disruptions, with 60% of SMEs expecting it to have a significant impact until at least the end of September, the future looks more positive – that number drops to just 13% by this time next year.
Barclays Payments chief executive Rob Cameron said: “SMEs are once again proving their resilience and securing their role at the heart of the UK economy, especially in the face of the challenges posed by coronavirus. Despite uncertainty and business disruption, SMEs are outperforming their own revenue expectations and beginning to look to the future by returning to work and thinking about investment.”