Federation of Small Businesses

SME confidence bounces back




Confidence among UK SMEs has recovered amid lower inflation, according to a new study.

The latest Federation of Small Businesses (FSB) small business index (SBI) revealed that a third of firms (32%) have said that they expect their performance to improve over the next three months.

Only one in four UK businesses (27%) expressed a lack of confidence about the upcoming quarter, while 40% expected their performance to remain the same.

The quarterly small business index stood at +6 in Q1 2018, up from -2.5 in Q4 2017.

More than two thirds of firms (67%) reported that their revenues were either stable or increasing.

The proportion of firms planning to increase investment has risen to a third (33%), while half (50%) expected to expand operations over the next 12 months.

Mike Cherry, national chairman at FSB, said: “After a 2017 dogged by spiralling prices and political uncertainty, it’s good to see small business confidence back in the black.

“The resilience of the small firms and self-employed entrepreneurs that make up 99% of UK businesses has lifted economic forecasts for the coming 12 months. 

 “Positive commitments from the chancellor, along with agreement on a Brexit transition period and falling inflation, should make it easier for small business to plan, invest and grow in the months ahead.”

Sign up to our newsletter to receive more news like this story

I accept that by joining the B&C mailing list, I will receive relevant news and promotional material via B&C on behalf of its partners and advertisers. Your data will not be passed on to any third party.
No, thanks, just the news please.

Leave a comment


Blonde teen Lidsey posing for you