A survey by small business group ISME has found less pessimism among its members, though conditions remain 'extremely tough'.
ISME's Q3 survey of 500 companies found that a net 37% of firms were less optimistic about the future, an improvement from the 56% in the second quarter. Construction remained the most pessimistic, with a net 73% of firms less upbeat.
69% of companies surveyed viewed the current business environment as 'poor' or 'very poor', down slightly from 74% in Q2. 23% expect conditions to improve over the next 12 months, unchanged from the previous survey.
64% of businesses said their viability was under threat over the next 12 months if current conditions remained.
But the survey showed that employment continued to deteriorate and sales levels remained extremely weak. A net 60% of firms implemented job cuts in the last 12 months, up from 56% in the previous quarter. There was a slight improvement in job prospects, however, as 39% of companies expect to let people go over the next 12 months, down from 43% in Q2.
83% of firms reported that turnover was down on the same period last year, with only 8% seeing higher sales. Nearly half of companies also expect sales to decline over the next 12 months.
In a more positive sign, 22% of companies have increased investment in their business, up from 19% in the previous survey.
