Small manufacturers raise prices while expanding workforce

Small and medium-sized manufacturers have raised the price of goods, with small firms expanding their workforce, a survey by the Confederation of British Industry (CBI) has found.

Some 51% of small and medium-sized manufacturers told the CBI that their average unit costs had increased over the three months to April. The survey also found that a balance of +20% of firms has raised domestic prices.

"Small and medium-sized manufacturers are continuing to feel the impact of higher fuel and raw material costs," said Russel Griggs, Chairman of the CBI's SME Council.

The findings also showed that optimism about the overall business situation has fallen to a balance of -20%. Plans to invest in plant and machinery were found to have weakened since January and while intentions to invest in buildings had improved, they too remained weak.

Medium-sized businesses, experienced a net 8% cut jobs. However, despite this pessimism, small manufacturers were found to have expanded their workforce over the past three months, with +12% small businesses taking on more staff.