PracticeConsultingCBI survey shows fall in SME confidence

CBI survey shows fall in SME confidence

Confidence among small and medium-sized companies has fallen, according to Confederation of British Industry figures released today.

In the CBI’s quarterly industrial trends survey, optimism was found to have fallen for the second survey in succession. Thirty-nine per cent of companies questioned were less optimistic than they were four months ago, while 19% felt better about their prospects.

The report – which polled nearly 900 businesses – highlights declining export sales as partly responsible for the drop in confidence. Exports orders fell by the largest amount since last July and at a greater rate than expected. The situation, however, is now expected to remain stable.

Today’s survey will add more pressure on chancellor Gordon Brown to take measures to curb the strength of the pound to boost the export market.

But following an inflation warning from the Bank of England last week, monetary policy looks likely to be tightened before the end of the year. Analysts believe this will include a rise in interest rates adding to the plight of British exporters.

Speaking last week, the Bank’s deputy governor, Mervyn King, disappointed business with his remarks on interest rates.

‘I think you would find it difficult,’ he said, ‘given this outlook for inflation, to think that the immediate outlook is one of cutting interest rates.’

CBI Associate director of Economic Analysis said: ‘Confidence among smaller companies has taken a further knock with falling orders at home and in overseas markets.’

‘At the very least companies will be looking for a period of interest rate stability to continue,’ he added.

CBI website

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer