The small business index has run since early 2010. The index shows that confidence among small business operators has reached an all time high. At the end of quarter 2 the confidence index reached 15.9, that is 9.6 points higher than at the start of the year.
There are probably several underlying reasons why confidence has improved. The old adage of ‘An Englishman’s Home Is His Castle’, in other words a steady rise in house prices this year was always going to boost feeling, and it has.
The Spending Review
The survey was completed prior to the government spending review, announced yesterday. It therefore remains to be seen whether this will change small business confidence.
We will publish a separate overview on the spending review later.
- More small firms expect turnover to increase this year
- More small firms expect to increase their staffing levels
- More small firms are reporting increased export levels despite a wider slowdown in cross border trade
The one major downside is retailers continuing to be the least confident. Probably not surprising and unlikely to improve as the spending review starts to bite in earnest. The one thing that the spending review certainly won’t do is help the rising cost of energy.
Energy costs are reported as the prime factor in the rising costs of small business. Not surprising really…
If you want to read the survey report in full then you can access the small business survey from the FSB’s website, a link is below.
By David Farmer
- Federation of Small Business – Survey
- Data taken from the Federation of Small Business, which Lime Consultancy is a proud member.