Small manufacturers 'hopeful of recovery'

Date: 7th May 2009

Britain's small manufacturers have expressed hope in an upcoming recovery in the sector, despite the latest output statistics.

Figures from the Confederation of British Industry (CBI) reveal that orders for goods and production fell by their fastest rate in over 20 years in the first quarter of this year.

In spite of this, around 13 per cent of those firms surveyed experienced an increase in output and demand.

Chairman of the CBI's small business council, Russel Griggs, said: "It has been a torrid few months for smaller manufacturers."

Mr Griggs added that while a number of businesses were hopeful that the speed of decline in output was "moderating slightly", the next quarter was still likely to be difficult.

Manufacturers looking for advice on how to increase their cashflow may find the support of an accountant helpful.

In a bid to help struggling businesses, the government has launched its own trade credit insurance top-up scheme, which provides protection against buyers defaulting on payments.