European businesses reduced their spending by 41% in April, compared to the previous month, according to the Soldo Spend Index. The resource, compiled by spend management platform Soldo, features data from a sample of 28,000 businesses across Europe.
The Office for National Statistics (ONS) announced mid-June that UK GDP fell by 20.4% in April 2020, and the effects of this significant drop are clearly reflected in business spending habits. According to the Soldo Spend Index, the average spend for businesses in the UK and Ireland decreased by 65% year on year in April. In the rest of Europe, it decreased by 57%.
However, there were signs of a slow recovery in May, as spending increased by 38% over the previous month. This corresponds to the government’s easing of lockdown restrictions, which were loosened on the 11th of May. Average business spending in the UK increased by 20% during the week commencing the 11th of May, compared to the previous week. This data suggests that the increased freedom of movement is providing a much-needed boost for some businesses while others continue to adjust to working remotely.
From March to May 2020, business spending on services – including professional services, subscriptions, and software – increased by 81% on the previous year, it says. Services accounted for 35% of all purchases made using Soldo during the month of April 2020. Business spending on shopping, such as purchasing stationery, tools, and relevant equipment, also increased, accounting for 30% of all Soldo transactions in May 2020. Online spend accounted for 58% of the expenditure over the period.
