Neil Davies, Close Brothers Asset Finance CEO
Print is the fifth most enthusiastic business sector according to the Close Brothers’ quarterly Business Barometer survey, which also reveals that almost 57% of SME business owners do not feel confident about the UK’s economic outlook for 2017.
The GMI survey was conducted in December 2016, canvassing the opinions of 900 SME owners and senior management across the UK and across several industries on a range of issues affecting their businesses.
Firms at the smaller end of the scale – under £500k annual turnover – were the least confident, with 64% answering ‘no’ to the question ‘are you confident about the UK’s economic outlook for 2017?’
‘Businesses owners are not taking a negative view, but they are being pragmatic about the UK’s economic prospects over the next 12 months,’ said Neil Davies, CEO, Close Brothers Asset Finance.
‘There are still many unknowns,’ he continued. ‘For example, the value of Sterling is seen as a short term issue and doesn’t create conditions for long term investment. While activity in a number of sectors is stronger due to the weaker pound, helping to boost orders from overseas, cost pressures remain high with price increases being passed onto consumers, which may contribute to an increase in inflation down the road.’
Business owners in the North East and Northwest of England were the most positive, with 56% and 54%, respectively, feeling positive about the year ahead, contrasting with the 36% of Scottish respondents.
The most enthusiastic sector was manufacturing, which returned a positive response of 61%, followed by engineering with 52%, construction 49%, transport 47% and print 37%.
‘UK manufacturing is on a high at the moment, with recent rates of growth for production and new orders among the best seen over the past two and a half years, according to the Markit/CIPS purchasing managers’ index,’ continued Mr Davies. ‘The survey respondents are telling us […] that they see 2017 as a time of significant potential opportunity.’
