WA39

SME recovery slows

Small manufacturers have experienced a drop in the pace of recovery, the latest quarterly SME survey from the Confederation of British Industry has revealed.

30% of companies saw new orders increase in the past three months, while 33% said that new orders were down.

Small firms were particularly affected by rising oil and commodity prices, according to the report.

Business optimism, however, remained broadly unchanged, and 3% of companies reported that they expected an increase in new orders in the coming quarter.

Hugh Morgan Williams, chair of the CBI's SME Council, said, 'Although we have seen a slight pause in the recovery for smaller manufacturers, there are encouraging signs of a positive trend'.

'However, the recovery is fragile and has started from a low base after a long period of decline. There is no let up in cost pressures or in the strength of competition in the market, which both continue to squeeze margins', he added.

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