12/11/2010
Small manufacturing firms are set to increase their output in the coming months, according to recent survey by the Confederation of Business Industry (CBI).
The positive findings of the CBI study show that small businesses are continuing to prosper in the post-recession era, and suggests that there is growing confidence in the economic environment.
The Independent reports that 31% of the 382 participants in the CBI survey expect to increase production over the next three months. Just 12% anticipate a fall in output.
This creates a positive balance of 19%, which is a significant improvement on the 9% balance of the previous quarter. An increased demand from domestic and overseas markets is thought to be the driving force behind the positive figures.
Many small firms may now capitalise on the positive outlook and use invoice finance to help invest in growth. Russel Griggs, chairman of the CBI's SME council, said he was pleased to see that so many small businesses were looking to invest in expansion and innovation in the coming months.
"Smaller manufacturers saw the pace of output growth slow slightly in the last three months after the fillip from stock rebuilding dwindled," BBC News quoted Mr Griggs as saying.
"But manufacturers expect a faster rise in production in the coming three months as demand at home strengthens."
"It is encouraging that firms have increased their headcount this quarter and are now planning to invest in plant and machinery, and innovation," he added.
Joseph Jeffries