Small business confidence has reached an all-time high according to the findings of the latest Small Business Index published today by the Federation of Small Businesses (FSB) in conjunction with Cebr.
The confidence Index rose to +33.5 in the third quarter of 2013 beating the previous high of 18 recorded in the first quarter of 2010 and is double the 15.9 score from the second quarter of 2013. The data shows three successive quarters of growth in 2013.
Revenues have returned to growth on average and firms are expecting greater turnover and profitability growth over the next quarter, back up by a firm increase in export expectations.
Encouragingly, confidence has improved for firms across most sectors and most UK regions. And, as a result of this improved confidence the investment in people and businesses needed to boost the economy is beginning to feed through. For the first time since the report began more firms are looking to take on staff than reduce their workforce and spare capacity has fallen back meaning that more firms feel confident to grow. Furthermore, the proportion of firms with ambitions to grow has risen to 54.2 per cent up from around 51 per cent in Q3 2012.
Overall the findings of the latest Voice of Small Business survey are very encouraging for short term UK growth prospects and Cebr expects growth to pick up further in 2013.
John Allan, National Chairman, Federation of Small Businesses, said:
“Optimism, growth and confidence can be used to summarise this quarters findings. Following from the Chancellor’s speech on the state of the economy, small firms are clearly helping the economy gain momentum compared to the same point last year.
For more information and the full report, please see FSB’s Voice of Small Business website.