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Businesses 'confident about UK's economic outlook'

Published On 15 May 2007 at 11:09:14

Small and medium-sized enterprises (SMEs) in the UK are increasingly confident about their long-term prospects and growth, new data suggests.

The Small Business Research Trust (SBRT) and HSBC Bank carried out a study which found that 45 per cent of SMEs said they expect their sales to grow in the coming months.

Similarly, 16 per cent of small businesses think that they will look to recruit in the next quarter, while 21 per cent are predicting greater levels of investment over the period.

"It is somewhat surprising that small businesses in the UK are growing in confidence, considering the increasing challenges they face from the uncertain economic climate," explained Simon Wainwright, the head of business banking at HSBC.

"That they are continuing to invest and recruit more to grow their businesses shows great resilience and determination in the UK small business sector.

"However, it is vital that small business owners continue to budget carefully and plan diligently for any future expenditure and changes in circumstances," Mr Wainwright added.

Earlier, the Office of National Statistics revealed that consumer price index (CPI) inflation fell to 2.8 per cent in April - suggesting that recent interest rate increases could have been successful in curbing spending.

 

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