Outbreak of optimism from manufacturers

By GARETH MACKIE
Published on 08/05/2012 00:00

Optimism among Britain’s small manufacturers has risen for the first time in a year, despite many companies expressing fears that political and economic uncertainty could curtail demand for exports, the CBI said today.

Of the 356 respondents to the CBI’s latest quarterly SME trends survey, a balance of 22 per cent said they were more optimistic than not regarding the current business environment. That marked the first rise in sentiment since April 2011, when the balance was 12 per cent.

Although SMEs expect export orders to rise, 43 per cent of those surveyed said they were concerned that political upheaval and worsening economic conditions overseas would limit export demand, up from 23 per cent a year earlier.

Lucy Armstrong, chair of the CBI’s SME Council, said: “Small and medium-sized manufacturers are feeling more optimistic for the first time in a year, an encouraging development given the important role that they play in our economy.

“Indeed, firms expect orders and output to rise strongly in the coming quarter and plan to invest more in the year ahead, pointing to growing momentum in manufacturing activity.”

Hair and beauty salons across Scotland expect to create over 900 jobs this year, boosted by demand from image-conscious men, according to distributor Salon Services. Its survey of 421 salons found 74 per cent had seen an increase in male customers this year, the highest in the UK.

GARETH MACKIE