Business confidence among SMEs has plummeted to a four year low, according to a new study.
ISME's latest quarterly Business Trends survey of 500 small and medium-sized firms reveals that 38 per cent of companies are less optimistic about business prospects than they were 12 months ago. This compares to 18 per cent who claimed to be feeling more optimistic.
Companies working in the distribution, retail, construction and manufacturing sectors were found to be the least positive when it comes to the future. However, firms in the services industry bucked the trend.
The most pressing concern reported by ISME members was economic uncertainty. Erosion of competitiveness, labour costs, increased regulations, reduced orders and inflation were also cited.
On the employment front, businesses recorded a slowdown in job creation during the third quarter with some sectors reporting a reduction workforce numbers.
However, 17 per cent of companies said they were planning to increase employment over the next 12 months, down 1 per cent on the previous two quarters. In addition, 46 per cent of firms planned to increase investment during the next year, up by 1 per cent on the preceding quarter.
During the third quarter, 55 per cent of companies reported an increase in turnover, up 3 per cent.
