3 In A Row: Small Business Confidence Up For Third Successive Quarter
Firms in the North East are the most optimistic in the country, while business owners in Wales are the most pessimistic
UK small businesses confidence has increased for a third consecutive quarter, according to a report by Capital Economics.
The SME Growth Tracker of 2017 has revealed that, on average, small and medium sized enterprises are predicting a 2.3% increase in revenue for the coming 12 months.
When broken down by region, firms in the North East are the most optimistic in the country, with a SME Confidence Index score of +11 – far acceding the national average.
In contrast, business owners in Wales are more pessimistic about the future, with their SME Confidence Index score of -2 suggesting they believe they’ll suffer a dip in performance over the next 12 months.
Despite the general optimism, it appears that businesses are worried about the potential of rising inflation and increased supply costs, with 78% believing the former is a risk to their business, with respondents believing prices to raise by 2%.
In terms of supply costs, small enterprises also seem to believe things will get worse before they get better, with costs expected to increase by 2.5% in the year ahead.
Simon Johnson, UK director of Seller Services, Amazon, said:
“We are seeing a big rebound in confidence amongst British small businesses after a significant decline in December, but small businesses leaders remain concerned about the impact of rising supply costs and higher price inflation.”