Small manufacturers optimistic

The tide could be turning for small manufacturing businesses, after the first increase in orders for three years was reported today.

According to figures released by the CBI, nearly 35% of firms saw orders rise over the past three months.

A growing number are also feeling more confident about the future the survey of 700 companies revealed, with optimism among small manufacturers improving at its strongest rate for two years.

Hugh Morgan Williams, chairman of the CBI's small firms council said: 'Though the increase in orders is relatively modest, it will mean an awful lot to smaller manufacturers who last saw orders rise in early 2001.

'Confidence is on the up and while jobs are still being lost among the smaller firms, it is encouraging to see medium size companies increasing employment for the first time in over six years.'

Yet despite the encouraging signs of an upturn, around 28% of companies reported a fall in orders over the same period. The strength of sterling is being blamed for holding back exporters.