Fourth quarter start consolidates September gains according to EAMA

The continuing improvements applied both to UK and to export business with the balances on enquiries in the +20s, and +10 on orders both from home and from foreign markets. The balance on employment remains fairly bullish with a balance of +13 saying they have vacancies. And investment activity has picked up again, with over half the firms reporting some form of investment from capital plant to training. There was however little or no change in ease of access to finance, although the outlook remains positive. Martin Walder, EAMA chairman, commented: "The fourth quarter has started well. But there is still some understandable reticence out there. Troubles in the financial markets continue to haunt many SME firms. They don't want to get caught out again and that leads firms to be cautious. A few banks have made specific efforts to support SMEs and help them to export. In markets such as China, UK mechanical engineering firms are doing well with sales up 25 per cent at the end of the third quarter. That of course is exceptional. But it needn't be. If more banks take a more supportive approach the UK and its exporters could come out of this quite well."