Bibby's Business Factors Index points to renewed confidence
The latest Business Factors Index report from Bibby Financial Services shows an increase in SME performance from Q1 to Q2 in all sectors including manufacturing.
The Business Factors Index measures turnover activity of Bibby Financial Services’ 4,000 UK clients against a base point of 100.
For Q2 the manufacturing sector stands at 124.2, the best performing Q2 since the Index started in 2007 and the best performing sector across the Index. Construction is also buoyant, recording a figure of 110.2, which is also the best performing Q2 for that sector.
Bibby Financial Services’ clients are predominately made up of small and medium sized businesses with a typical turnover of £1.5m and ten employees. According to the Federation of Small Businesses, SMEs such as this make up 99.9 per cent of all businesses in the UK.
In addition, the Index also reveals the results of an independent SME survey of 450 business owners, which shows increasing levels of orders during the second quarter in eight out of 10 of the UK’s regions (excluding Northern Ireland) compared to Q1, and increasing confidence in six out of 10, also compared to Q1.
Across the UK, the number of SMEs reporting an increase in orders rose by a third in the second quarter compared to Q1. In terms of confidence, the level of SMEs which said they are hopeful about the future rose by ten per cent across the national sample base, again compared to Q1.
Results of Q2 small business survey of 450 business owners:
- SMEs in eight out of the 10 UK regions in the survey reported increasing levels of orders compared to Q1
- Six out of 10 also reported higher levels of business confidence compared to Q1
- Across the UK as a whole the number of SMEs reporting an increase in orders rose by a third
- SMEs which said they are hopeful about the future rose by ten per cent across national sample base
- One in five business owners believe the economy will have recovered by 2015