SMEs are displaying a modest but encouraging increase in general business confidence according to the latest survey of trends by the CBI (Confederation of British Industry).


Around 30% of the 895 firms questioned between 14 December and 10 January said they were more optimistic about business prospects for the year ahead an increase of 7% on the last survey carried out in October 2000.


Some 34% of respondents claimed orders were up (an increase of 3% on Octobers figures) and that they expected total orders to increase over the next four months.


But prices are still under pressure, which is having a knock-on effect on investment plans, said CBI chief economic adviser Kate Barker.


[This] is a real concern because these are businesses that are expected to create jobs and growth, she added.


BPIF director of corporate affairs Mike Hopkins said the findings were broadly in line with the federations own Directions quarterly study. But printers seem to be less optimistic than the rest of the manufacturing sector as a whole.


Just 3% of printers are more confident about prospects for the three months to March, but this is a dramatic jump from last year when that figure was minus 45%. Thats almost suicide territory, said Hopkins.