Almost three-in-five (57%) SME business owners say that they do not feel confident about the UK’s economic outlook for 2017, according to the Close Brothers Business Barometer.
The quarterly survey questions over 900 UK SME owners and senior management across a range of sectors and regions.
Firms at the smaller end of the scale (under £500k 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,” says Neil Davies, CEO, Close Brothers Asset Finance.
“There are still many unknowns and this uncertainty is reflected in what small business owners are telling us.
“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.”
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%.
