Optimization Rises among UK’s Smaller Manufacturers

According to the latest SME trends survey by CBI (Confederation of British Industry), optimism among UK’s smaller manufacturers is at record level. In the three months up to October (42%) firms reported that total new orders increased for the first time since July 2012 and (25%) said they decreased, giving a balance of +17%. This greater optimism and activity among small and medium enterprises has led to a change in the investment plans for the year ahead, with forecasts for spending on product innovation, plant and machinery, buildings and training all in a positive territory.

According to the survey, 42% of firms say an increase in domestic orders and 22% reported they decreased, giving a balance of +20% is the highest since January 1995.

33% of firms have an increase in export orders and 19% have a decrease, giving a balance of +14%, this is the highest since April 2011.

Output increased modestly at +8%, and predicted to increase (+15%) further in the next three months.

The quarter for which the survey has been made is a positive for for SME manufacturers, with output and new orders both on the rise. The SMEs expect further improvement in the following quarter.

Source – Confederation of British Industry

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