Released, 19 November 1998.

The McCannics e-survey, month just ended October 1998

Could Try Harder

Interest rates cut a little better than last month, but still not enough, say e-businesses

The most recent McCannics e-survey reveals that the 5 November 1998 UK interest rates cut, by 0.5 per cent to 6.75 per cent, is expected to have only a small effect on real businesses. Only 8 per cent of internet-connected UK businesses expect that the cut will have a significant positive effect on their business. However, this is a little higher than the 5 per cent which in the previous survey thought that the 8 October cut of 0.25 per cent would have a significant positive effect.

The proportion thinking that this month's cut will have a slight positive effect is also up a little, from 49 per cent to 52 per cent (see chart, right). One respondent said of the interest rates cut:

"The rates are still far too high ... we have a very long road ahead."

More comments from respondents...

The e-survey has been operating on a pilot scale for a little over a year and is now ready to show its full potential. Organisations which would like to collaborate and can encourage a significant number of UK internet-connected businesses to volunteer to take part in the survey should contact McCannics. Individual UK-based businesses which would like to take part in the survey should send a blank e-mail to volunteer@mccannics.demon.co.uk.

The Bank of England has today
cut interest rates.
What sort of impact do you expect
this to have on your business?

Sales and Prices

The need for further measures to prevent the UK economy slipping into recession was highlighted by the 34 per cent of firms which reported lower sales in October 1998 than October 1997. This is the highest proportion since the survey began, in July 1997. For the first time, less than half (49 per cent) of these e-businesses reported higher sales than at this time last year (see chart).

Some 25 per cent of the firms said that their selling prices were higher in October 1998 than in October 1997 and 13 per cent said that they were lower.

"Was your sales turnover in the month just ended higher, about the same, or lower than in the same month last year?"

Note: Chart shows percentage balances (percentage saying higher minus percentage saying lower). Earlier surveys include late responses and so may differ from figures published elsewhere.

The sixteenth e-survey questionnaire was sent out on 5th November 1998 and by 17th November responses had been received from 53 businesses across the UK.

Owners or managers of businesses in the UK which would like to take part in the survey should send a blank e-mail to: volunteer@mccannics.demon.co.uk

All individual replies will be kept strictly confidential. Only anonymised results will be published, and your e-mail address will not be passed on to any third party.

Details of the sample were included in the first survey.

E-mail us with comments, queries or suggestions for future topical questions at: esurvey@mccannics.co.uk

e-survey: