Business confidence falls

Business
confidence among small and medium sized manufacturers in the UK has fallen
dramatically since the beginning of the year.

The
balance of businesses that felt optimistic about their prospects fell from plus
seven in January to minus 30 in April, according to the CBI.

During
the last three months manufacturing output fell at its fastest rate since
October 1999, creating a pessimistic outlook among small firms and to a
slightly lesser extent medium sized companies.

Prices
and unit costs are also falling and as a consequence UK manufacturers are
seeing their profit margins being squeezed.

CBI
spokesman Simon Bartley, said, “Last week’s quarter point cut in interest rates
was timely but it remains to be seen whether or not it makes small and medium
enterprises more confident about investing in the future.”

www.cbi.org.uk

By Ben Willmott. Click here to respond.

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