05/05/2010 - Small firms seeing rise in exports
Small manufacturers are growing increasingly positive about their prospects as they experience a steady rise in domestic demand as well as exports, a report has said.
According to the CBI, the relative weakness of the sterling had led to improved demand for UK-manufactured good in overseas markets, while production in small and medium enterprises (SMEs) continued to stabilise.
A third of over 400 manufacturers surveyed by the CBI had seen an increase in orders for the quarter to April.
However, the group warned that the rising cost of raw materials was putting pressure of profit margins and some small firms were still struggling to access credit.
Russel Griggs, chairman of the CBI's SME council, said: "The UK's smaller manufacturers are finally reaping the benefits of all their hard work as well as a relatively weak currency. Exports are growing steadily, domestic demand and production are stabilising, and firms are feeling more upbeat about prospects.
"With demand expected to grow in the coming months, manufacturers are thinking about taking on extra staff over the next three months."
There was little change in the number of staff employed, after six consecutive quarters of job cuts, while most firms expected to marginally increase staff numbers in the next few months, the study found.
Copyright © Press Association 2010
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