Small firms positive about trading

Date: 26th July 2010

Small businesses are becoming increasingly confident about near-term trading conditions, new research has found.

The study from Bibby Financial Services found that 72 per cent of small firms were positive about the economic environment in the second quarter of 2010.

In contrast, just 63 per cent demonstrated such optimism in the first three months of the year.

However, the report also revealed that business output declined in the second quarter compared to the previous three-month period.

Edward Rimmer, UK chief executive at Bibby, said: "It is disappointing to see that the economic momentum which we saw peak in March of this year, has not been maintained [but our research] suggests that this has done little to curb optimism among UK business owners and managers.

"This is likely to have been fuelled by the unusually high level of turnover accomplished in March, which has perhaps driven businesses to feel more confident in the future of their business."

Posted by Emma Clarke