SMBs set to up investment in 2013

Monday 12 November 2012

Business

UK small and medium-sized businesses (SMBs) plan to invest over £45.8 billion in the next 12 months, it has been claimed.

According to GE Capital’s latest European SME Capex Barometer, this represents a 23 per cent increase on the same point last year.

Some 65 per cent of businesses are looking to upgrade existing equipment in order to boost efficiency and productivity, the firm claimed.

GE Capital said SMBs are also set to take on new employees over the coming months, with an extra 452,000 staff set to be hired by 2014.

This represents a 20 per cent increase on hiring intentions 12 months ago.

John Jenkins, chief executive of GE Capital UK, said that after a period of under-investment brought on by broader economic uncertainty, it is good to see UK businesses once again looking to increase investment in capital expenditure and creating new jobs.

"In particular, a drive to modernise and upgrade equipment should spark a corresponding increase in productivity," he stated.

"This is a welcome sign for the UK economy and will provide a boost to wider economic recovery."

The UK economy emerged from recession during Q3 2012 with one per cent growth between July and September.

Posted by Alex Boardman