Manufacturers grow in confidence
Nov 03 2009
Small and medium-sized manufacturers are the most optimistic about the market in more than two years, according to the Confederation of British Industry (CBI).
Some 28 per cent of companies say they feel more positive about the business outlook, while 20 per cent said they felt less confident, resulting in a positive balance of 8 per cent – the highest figure since April 2007.
Russel Griggs, chairman of the CBI’s SME council, says: ‘It is good to see that both small and medium-sized firms feel more positive about business prospects. However, current conditions remain challenging, with orders and output still falling, and uncertainty about demand a major concern.
‘Accessing finance remains a particular problem for this size of business, with a record proportion [30 per cent] saying it is affecting their ability to invest,’ he adds.
Of the 424 firms surveyed, 40 per cent saw the volume of total new orders decline in the three months to October, while 24 per cent reported a rise. The resulting balance of -16 per cent is an improvement on the previous quarter’s balance of -34 per cent.
According to the Chartered Institute of Purchasing and Supply, output in the manufacturing sector increased by the greatest rate last month since November 2007.
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