Partner Article

UK SME manufacturers taking a cautious approach

Mark Sismey-Durrant, Chief Executive Officer at Hampshire Trust Bank, comments on today’s CBI SME survey:

“UK SME manufacturers look to be taking a cautious approach, with plans for capital spending on plant and machinery falling by 10 per cent and buildings by 18 per cent in the past three months. A reluctance to invest money in the immediate future echoes our own research, which revealed that the average manufacturing SME holds an average £259,773 in their current account, citing a need to create a ‘cash buffer’ in case of economic downturn as the main reason for this. Political uncertainty could also be dampening business appetite for growth and impacting on investment plans, with the ‘Brexit’ vote happening perhaps as soon as June this year. However, SMEs that are holding on to their money in a current account could be missing out on a valuable opportunity to maximise their cash in a business savings account, which typically offers a higher rate of return, providing increased funds for future investment.”

This was posted in Bdaily's Members' News section by Hampshire Trust Bank .