Small UK firms 'boosted by overseas orders'

Orders for small businesses in the UK grew during the final stages of 2007 on the back of strong demand from overseas, according to a new report.

The latest SME Trends survey from the Confederation of British Industry (CBI) reveals that ten per cent of the nation's small and medium-sized firms experienced a higher output level in the last quarter of 2007.

In addition, 12 per cent declared an increase in export orders - the strongest figures since 1995, Thomson Financial reports.

However, the study also found that a large majority of the country's small enterprises expect business to tail off as 2008 progresses.

"Though smaller manufacturers enjoyed the best overseas demand in over 12 years last quarter and last week's interest rate cut will provide some relief, uncertainty about the future is growing across the sector," stated chairman of the CBI's SME Council Russel Griggs.

In total, 78 per cent of small firms said that they expected growth to be limited in the first quarter of the year by a flattening in overseas demand.

Last Thursday (February 7th) the Bank of England cut interest rates from 5.5 per cent to 5.25 per cent.