Small firms struggling for credit
DEMAND for British-made goods is improving at home and abroad but access to credit remains a headache for smaller firms, says a study by the CBI.
Manufacturers reported a better than expected rise in export orders, thanks to the weakness of the pound, while companies also saw a stabilising of domestic orders.
The CBI’s quarterly trends survey of small and medium sized enterprises (SMEs) said 36 per cent of the 402 manufacturing firms had a rise in the volume of orders, against 26 per cent who fell.
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The gap between the two marked the first significant growth since January 2008, helped by a third of firms reporting increased export orders.
Russel Griggs, chairman of the CBI’s SME Council, said: “It is still a concern that access to credit remains a headache for some firms.”
“With demand expected to grow in the coming months, manufacturers are thinking about taking on extra staff over the next three months.
“However, firms are experiencing a sharp rise in raw material costs which is squeezing profit margins.”