| | Optimism amongst UK
businesses is at its
highest level since
2004, says a KPMG
survey: while over half
of respondents feel the
economy is on an upward
curve, three-quarters
believe that UK
businesses are
competitive within
Europe. This is in
direct contrast with the
previous survey, which
reported a diminution in
confidence.
KPMG's latest survey
of UK small to
medium-sized businesses
(classed as having
turnover of between £5m
and £500m) shows a
substantial hike in the
number of businesses who
are optimistic about
their sector's prospects
over the coming 12
months.
When asked how they
felt about the prospects
for small to
medium-sized companies
over the next year,
almost two in three
(64%) of those surveyed
predicted a positive
outlook; the highest | |
| |
| | "competitive" or
"extremely competitive"
within Europe.
Mel Egglenton, UK
head of middle market
for KPMG, said: "Our
latest survey shows
confidence amongst SMEs
is clearly on the up,
with levels of optimism
as high as they have
been for three or four
years. It is also worth
highlighting that the
people who answer these
questions are
businessmen, not
economists. Therefore,
the rationale for their
answer is based not on
some detailed analysis
of macro-economic trends
but the health of their
order book. So, to see
these businesses in
confident mood and with
healthy order books
surely bodes well for
the future."
So what has prompted
this upturn in
confidence? Egglenton
said: "Well it's hard to
put a finger on it, but
it wasn't that long ago
that small to
medium-sized businesses | |
|
| | were struggling with
rising energy costs.
Many had to look hard at
ways to improve their
efficiency, and perhaps
as a result they are now
left with businesses
that are more robust
than they would have
been otherwise. So it
appears that those who
felt the pinch over the
last year or two have
now steadied the ship
and are looking forward
to the next 12 months
with a renewed sense of
optimism."
Part of the reason
for the upswing in
confidence may be found
elsewhere in the survey.
In the past, when asked
where they feel the UK
currently stands in the
economic cycle,
responses have tended to
be fairly well spread
out. This quarter,
however, there is a
definite groundswell of
opinion in one
direction, with 58%
believing that the
economy is on an upward
curve.
One part of the | |
|
| | survey that did
highlight a growing
concern among many
businesses was the
questions on interest
rates. When asked what
should happen to
interest rates, 66% felt
they should be held at
present levels.
Egglenton commented:
"Much has been written
in recent months about
what the Bank of England
should do to the UK's
interest rate, and our
findings show that
two-thirds of businesses
would like to see
interest rates held at
their present levels.
However, there is an
obvious concern among
those questioned that
interest rates are going
to continue to increase;
41% see this as being a
major issue in the
future. It'll be
interesting to watch
what effect any increase
will have on the levels
of confidence seen in
this report."
| |
|
Previous Page 
