Survey reveals an upturn in SME confidence

According to the quarterly index from Bibby Financial Services, 62 per cent of small and medium-sized enterprises (SMEs) in the region said business was the same or better than this time last year.

The data has also revealed that 25 per cent of SMEs in the region say they are hopeful about the future of their business.

Meanwhile, 27 per cent say they are planning to trade overseas, which is significantly higher than during the first quarter when it was just 10 per cent.

However, one in ten SMEs in the region said things are “incredibly tough” and that they are only just staying afloat as the double-dip recession continues longer than expected.

Mark Storey, managing director of Bibby Financial Services for the region, said: “It is a tough climate at the moment and inevitably businesses are struggling due to current economic conditions.

“We do, however have some fantastic young companies experiencing high growth which will make such a significant contribution to economic recovery.”

He said it was “an encouraging sign” that almost a third of SMEs in the region have seen an increase in orders recently.

Bibby Financial Services has been tracking the turnover performance of its 4,000 strong UK client base, alongside the business outlook of 450 small and medium-sized business owners, since the start of the economic downturn in 2007. In the three months to June, 41 small business owners from the Yorkshire region were interviewed about current trading conditions and their views on the UK’s economic landscape.

Nationally, the latest data showed a surge in business activity during the second quarter led by strong performances in the manufacturing and construction sector, followed by transport, wholesale and business services.

The findings echo official statistics from the National Institute of Economic and Social Research, which also reported a rise in manufacturing activity in May. The surge is thought, in some part, to have been down to the traditional May bank holiday moving to June for the Queen’s Jubilee.

All sectors performed better than pre-recession levels when the Business Factors Index started in the second quarter of 2007. More than half of UK businesses say trading conditions are steady and they are hopeful about the future.