SMEs sense better times ahead, says survey

A positive balance of 22 per cent of respondents to the Confederation of British Industry’s (CBI) latest quarterly SME (small and medium-sized enterprise) Trends Survey said they were more optimistic about the business climate in the three months to April.

This was the first rise in sentiment in a year, since the 12 per cent reading seen in April 2011.

Lucy Armstrong, chair of the CBI’s SME council, said: “Small and medium-sized manufacturers are feeling more optimistic for the first time in a year, an encouraging development given the important role that they play in our economy. Firms expect orders and output to rise strongly in the coming quarter and plan to invest more in the year ahead, pointing to growing momentum in manufacturing activity.”

Over the past three months the volume of total new orders rose modestly – an eight per cent balance – and is expected to see faster growth over the next quarter, with a 27 per cent reading. SMEs expect this to be driven by both domestic and export order growth.

Output was broadly flat for the second quarter running, but like orders, is expected to see a significant increase in the next three months after the 356 companies surveyed replied with a positive 19 per cent balance.