Barometer reading indicates growth for England's SMEs

Half of the 682 companies questioned expect to spend more on new machinery and premises over the next six months, a 12 per cent rise on the same period last year.

According to the report, a similar appetite exists for adopting new technologies with 40 per cent of firms indicating they will fund more activity in this area.

Just over half (53 per cent) of SME manufacturers reported an increase in sales in the first half of the year, with 67 per cent predicting further growth over the next six months.

In a statement, David Caddle, area director for the Manufacturing Advisory Service, said, ‘Manufacturers tend to be very cautious and traditionally would have needed significant confidence in the long-term future to relax the purse strings.

‘Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad. It is a reassuring finding and appears to meet the EEF’s recent call for the sector to fund more research, innovation and export growth.”