That’s the finding of GE Capital’s latest European SME Capex Barometer, which shows UK SMEs feel more buoyant about their future prospects and are less concerned about the overall health of the economy.
The findings, based on Q1 research amongst over 2,250 SME business leaders across seven European markets, show that UK SMEs intend to increase capex investment by 12% in the next 12 months to a total estimated £58.6bn – on average £58.2k per SME. Commercial vehicles and manufacturing equipment are the main focus of SME capex investment in the UK, with spending worth an estimated £35.8bn.
In addition, SMEs plan to create more than 660,000 jobs in the next twelve months, 26% more than planned in Q1 2013.
Overall confidence is stronger amongst SMEs in the UK than in any other European market. Almost two thirds of SMEs are feeling positive about the future (63% vs. 9% negative) compared to just over half in 2013 (52% vs 19% negative). Notably, less than a quarter of businesses surveyed in the UK reported economic uncertainty as an obstacle to investment, significantly less than at the same time last year (23% vs. 40%).
Ilaria del Beato, chief executive of GE Capital UK, commented: ‘UK SMEs appear to have reached a crucial tipping point in their willingness to invest for growth and hire new staff. This is a true measure of economic recovery and points to promising future growth potential as greater investment should help boost productivity.’
