UK small businesses have shown a boost in confidence last quarter. This is after the large drop that occurred after the referendum shook up plenty of people's confidence. However, the pound continued to lose value, which continues reduce profits and cause costs to rise. These findings come from the FSB (Federation of Small Businesses).
Last quarter, the Small Business Index of the FSB gave the UK a headline confidence measure of just -2.9. This quarter just past has lead to a measure of +8.5. During the start of 2016, it was at +8.6. This drastic reduction last year has been attributed to the country leaving the European Union.
The national chairman of the FSB, Mike Cherry, said that the organisation was delighted to see this huge boon to the UK's economy "... effectively wiping out the fall we saw over the course of the year in the run-up to the EU referendum and its immediate fallout."
He went on to add that the outlook for the UK's economy looked brighter, and that the ambitious small businesses in the country will be eager to make the most out of it. Already, small-time exporters are rising, seeing their goods competing well in the markets overseas.
The confidence in small businesses was called "negative territory" by the FSB. This puts them out of sync with the rest of the country. There are also many challenges to face in the future, with increasing costs causing profit margins to shrink. This is in no small part due to oil prices going up, in conjunction with the pound's value continuing to fall. The bottom line is hitting small companies as hard as ever, causing many to lose already dwindling profits.