UK freelancers’ quarterly earnings rose by 0.03% in the second quarter of 2019 when compared to the first quarter, according to a survey from the Association of Independent Professionals and the Self-Employed and PeoplePerHour.

The 0.03% rise in freelancers’ quarterly earnings follows a 17% decrease in Q1 2019.

The Confidence Index is a quarterly survey that tracks the business performance and economic outlook of independent professionals and the self-employed in the UK. It measures overall trends in the market for freelancers in order to identify inflationary pressures, business confidence, and an overview of freelancers’ perception of general economic conditions.

This quarter’s Confidence Index suggests that the freelance sector is stagnating in Brexit uncertainty.

In Q1 2019, freelancers predicted that the sector would enter recession in Q2 2019, however their prediction was not far off, as in the current quarter freelancers just about avoided recession with the 0.03% growth.

Meanwhile, freelancers’ confidence in their own business performance on a scale of -100 to 100 stood at -6.7, down from -6.1 in Q1 and also down from the 5.3 in Q2 2018. This was reinforced by the fact that 70% of freelancers believe their business costs will increase in the next 12 months.

Freelancers’ confidence in the performance of the wider economy over the next 12 months is in deep negative territory (-38.0). Their confidence in it for the next three months is at -27.4, an improvement over last quarter’s -36.3.

According to the Index, freelancers place the blame for this negative business outlook squarely at the foot of Brexit – followed closely by the government’s fiscal policy relating to freelancing.

By contrast, freelancers say their brand value and reputation in the market is the biggest factor boosting their business performance. This is followed by innovation in the services they offer clients and the growth of the sector they work in.

Overall, however, the Confidence Index this quarter shows a freelance sector that is stagnating and struggling under the weight of Brexit uncertainty.

“Although it seems freelancers believe there will be some movement on Brexit soon, they are far beyond the temporary boost at the end of 2018. Their day rates and quarterly earnings have barely shifted from the fall last quarter, and they are pessimistic about the future across a range of key indicators,” the report stated.