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21st July 2008
Falling sales hit business confidence
Tumbling sales mean that small businesses in the UK are concerned about their future prospects, a new study has indicated.
The latest Business in Britain survey from Lloyds TSB Commercial showed that eight per cent more businesses believed their order books, profits and sales would be lower in six months time than thought these things would have improved in the period.
According to the research, firms are basing their gloomy predictions on poor sales in the first half of the year. In fact, only six per cent more businesses said sales rose in the first six months of 2008 than said they dropped.
Interestingly, companies from London and the east are more optimistic about their future. What's more, companies that sell overseas are also more hopeful they can weather the economic storm that is widely predicted.
In total, 35 per cent of the companies questioned said they plan to sell more goods abroad in the coming months.
"The challenging economic climate is putting businesses to the test. And with sales and profits squeezed, it's no surprise that so many firms are suffering a lack of confidence," commented John Maltby, the managing director at Lloyds TSB Commercial.
"But the reality is that many firms will be able to weather this storm … With the right support and financial help, there are lots of opportunities for strong businesses to continue growing."
(c) 2008 Adfero Ltd.
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