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Manufacturing SMEs unsure about 2007

Published On 12 February 2007 at 12:42:19

The Confederation of British Industry (CBI) has warned that many small- to medium-sized manufacturing enterprises (SMEs) face an uncertain year.

The claims are despite figures from the CBI showing a strong opening period for SMEs to the year.

In the trade association's quarterly SME trends survey, it was found that good demand from abroad had allowed manufacturing firms to raise their output prices in the three months to the end of January.

However, business prospects for the next quarter are bleak, with expectations among firms showing a negative one per cent rating

Steve Sharratt, chairperson of the CBI's SME council, commented: "Medium-sized firms do seem to be enjoying more favourable overseas demand, but all firms are more concerned that prices will constrain exports, particularly with the stronger pound."

A worrying 11 per cent balance of firms believe they will be firing rather than hiring over the coming quarter.

"The flat business sentiment, along with an expected slowdown in demand and job cuts, shows this volatility may continue," Mr Sharratt concluded.

 

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