| SMEs
in Britain's manufacturing sector are losing confidence
in the economy
14.07.2003
SMEs
in Britain's manufacturing sector are losing confidence
in the economy, according to the Tenon Forum Quarterly
Report on entrepreneurial Britain, published back
in May.
Research
of SMEs in the sector carried out for the Tenon Forum
by NOP found that a staggering
72% believe
that economic uncertainty is preventing them from
meeting their business objectives, an increase of
10% from
the last quarter. The outlook in manufacturing is
also bleak with 51% feeling negative about the impact
of
the UK business environment on their performance
over the next 12 months, compared to 46% last quarter.
The
findings call into question the Chancellor's budget
forecasts of a strong recovery in 2004 and
2005 with
economic growth rising to between 3% and 3.5%.
They also cast doubt on the Government's ability
to pay
for its public spending commitments out of existing
tax rates.
Alan
Newton, chairman of the Tenon Forum, comments: "Small
and medium sized businesses employ some 12.5
million people in the UK and generate an estimated £400
billion of GDP. They are the engine of our economy
and if they are losing confidence, the Government
has to take note."
For
all SMEs, London remains the most pessimistic region,
with 63% feeling
negative about the impact
of the UK
business environment on their business, up
from 56% last quarter. The most dramatic downturns
in confidence
have happened in the North East, where 60%
of
SMEs now feel negative compared to 46% last
quarter, and the West Midlands, with negativity now
standing
at
53%, up from 35%" |
