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Record number of sales for small and medium UK factories
Reported on Tue, 15 Aug 2006
Small to medium-sized enterprises (SMEs) in the manufacturing sector may have to seek out business loans to cope with increased demand after new research reveals that exports have hit a record high.
The latest survey from the Confederation of British Industry (CBI) found that levels of new orders for SMEs reached the highest level in nine years.
Almost a quarter of small and medium manufacturers said the number of exports had increased over the last three months.
Steve Sharratt, chairman of the CBI's SME council, said: "Healthy order volumes have helped lift optimism after years of tough conditions, but profit margins continue to remain tight and costs are still rising.
"While things are clearly moving in the right direction there is no guarantee that this momentum will be maintained."
Taking out a business loan could help SME to invest in plant and machinery, as the survey suggests that spending in such areas continues to slide.
Meanwhile, the Bank of England's indication that interest rates may rise could mean SMEs are hit with further costs.
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