SME Confidence Tracker: Optimism amid challenge

"While businesses may be confident about their own trading prospects, they remain cautious about the domestic and international landscapes in which they operate."

Derek Ryan, UK Managing Director, Bibby Financial Services

Summary

In our first SME Confidence Tracker of 2025 in the Spring, there was cautious optimism among SMEs ahead of the Spring Statement. Six months on, caution has surprisingly been replaced with stoic optimism. While this sentiment may seem at odds with wider economic indicators and well publicised challenges - namely inflation, supply chain issues and other fiscal pressures - our latest report signals that while businesses may be confident about their own trading prospects, they remain cautious about the domestic and international landscapes in which they operate.

Key findings

• 72% expect sales to increase in the next six months – up from 66% in Q1

• 69% SMEs say they are a profitable business – up from 60% in Q1
• 62% say high costs and inflation are key challenges for their business
• 52% of SMEs say government measures to tackle late payments are inadequate
• 41% say measures introduced in the Spring Statement have made them less likely to invest in the next 6–12 months

What is the SME Confidence Tracker?

Launched in 2015, the SME Confidence Tracker is a regular study of SME owners and decision makers across the manufacturing, construction, wholesale, transport and services sectors. The study is based on a poll of 1,000 UK SMEs, and tracks views of business owners on a range of subjects including current performance, legislation, Government policy and investment plans.