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SMEs see decline in orders, but export optimism is highest since 2007

Small and medium sized businesses are still dealing with a decline in orders, but things “aren’t as gloomy” as they were, according to the CBI.

The business-lobbying organisation said 51% of businesses surveyed recently saw the volume of new orders decrease.

17% said their volume increased, translating to a spread of -34% for this quarter – an improvement from last quarter, which saw a -51% deficit.

Expectations for next quarter remain negative, but at -8% for orders and -9% for output, it is still hoped prospects will improve.

Russel Griggs, Chairman of the CBI’s Small and Medium Enterprises (SME) Council, said: “Business conditions remain difficult for the UK’s small and medium-sized manufacturers. Orders and output are still falling, but things aren’t quite as gloomy as they were three months ago.

He added: “The outlook for medium sized firms looks positive, but it is still to early to say weather export-led growth will deliver a platform for sustained recovery.”

The study also reveals that firms are the most optimistic about export prospects since April 2007, probably due to the weaker pound.

However, volumes of export orders shrank by more than expected in the current quarter, with a -32% spread.

This was posted in Bdaily's Members' News section by Ruth Mitchell .