The CBI carried out a survey on 411 participants in their latest SME Trends Survey. Some 18% reported they were more optimistic than they were three months ago while 28% said they were less optimistic.
The resulting balance of 10% marks the first notable in decline in sentiment in two years said the CBI.
The results come with expectations that growth in activity would not hold up in the next there months.
Lucy Armstrong, chair of the CBI’s SME council, said: “Orders and production have been strong for the UK’s smaller manufacturers this quarter, but growth is expected to stagnate in the next, and sentiment has fallen for the first time in two years.
“Confidence has also been affected by global economic and political uncertainty over issues such as the euro crisis and the US debt ceiling.
“As a result, manufacturers are re-assessing their business plans. They do not expect to take on any more staff in the next three months and intend to invest less in the year ahead.”
