The CBI has released a series of figures that certainly make for positive reading. According to their “trends survey” SMEs have been more optimistic in the last quarter regarding export potential going forward. The overall sentiment is rising at the quickest rate since April 2014, the CBI reports.
UK SMEs generally feel that their export business is likely to grow at the quickest rate since October 1988 in the next quarters. This is equal to a 33 percent increase.
Rain Newton-Smith, CBI Chief Economist, said: “Smaller manufacturers are increasingly confident about their export prospects in the months ahead as they continue to reap benefits from the weaker pound. But this is also leading to a rise in costs at home.” ` She added: “While investment intentions have improved, uncertainty among businesses remains high, and so the government must prioritise measures to ensure that firms keep investing ahead, like removing new plant and machinery spending from business rate calculations.”
We forecast that the rate of companies advertising jobs will increase for companies demonstrably active in the exports market both in Q4 and Q1 of 2018.
CBI also added: “Setting the right environment for firms to innovate must be at the heart of the Autumn Statement, so the government should commit to a long-term target for R&D spending of 3 per cent of GDP, getting behind Innovate UK and our catapult centres.”
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