SMEs across the board felt the positive effects of the growing economy in the third quarter, although some sectors stood out more than others as economic drivers.
The service sector in particular experienced a surge in growth not surpassed for 16 years. Growth in output and new orders remained close to August’s 19-year high.
Manufacturing grew for the sixth consecutive month in September, recording its strongest quarterly performance for two-and-a-half years. Output for the construction industry expanded for the fifth month in September, producing the sector’s fastest growth in 10 years. Commercial building experienced its fastest growth since May 2012.
The print and packaging and recruitment industries are slowly picking up. Driver demand is boosting employment in the transport and haulage industry, and wholesalers are showing improved trade and confidence.
Manufacturing and engineering
Schemes to promote these sectors and reduce the skills gap are encouraging young people to consider manufacturing and engineering careers.
Services
Increased business activity in the third quarter produced the fastest growth in service output for 15 years, and the fastest employment rise for six years.
Recruitment
Optimism building in the recruitment sector, with demand for staff growing by almost a quarter in the last 12 months.
Print and packaging
Growth is recorded in the print and packaging industries, with UK print trade exceeding expectations for the first time in two years.
Transport and haulage
Demand for drivers across the board is increasing as the transport sector begins recruiting for the busy Christmas period.
Wholesale and distribution
Half of wholesalers are showing improved sales volumes, and business confidence has more than doubled in the last quarter.
*The Close Brothers Business Barometer is conducted on a quarterly basis. It canvasses the opinion of SME owner managers on a range of issues affecting their business.
