UK small businesses confidence has increased for a third consecutive quarter, according to a report by Capital Economics.
The SME Growth Tracker of 2017 has revealed that, on average, small and medium sized enterprises are predicting a 2.3% increase in revenue for the coming 12 months.
When broken down by region, firms in the North East are the most optimistic in the country, with a SME Confidence Index score of +11 – far acceding the national average.
In contrast, business owners in Wales are more pessimistic about the future, with their SME Confidence Index score of -2 suggesting they believe they’ll suffer a dip in performance over the next 12 months.
Despite the general optimism, it appears that businesses are worried about the potential of rising inflation and increased supply costs, with 78% believing the former is a risk to their business, with respondents believing prices to raise by 2%.
In terms of supply costs, small enterprises also seem to believe things will get worse before they get better, with costs expected to increase by 2.5% in the year ahead.
Simon Johnson, UK director of Seller Services, Amazon, said:
“We are seeing a big rebound in confidence amongst British small businesses after a significant decline in December, but small businesses leaders remain concerned about the impact of rising supply costs and higher price inflation.”
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