Sentiment among Agriculture firms continues to improve
Our Business Sentiment Index (BSI), which measures SME business confidence, has risen modestly for the third consecutive research period, with the agriculture sector maintaining its upward trajectory.
Appetite for investment
Agricultural firms’ appetite to invest remained steady at 76% (September 2023: 77%) and is still among the highest of the sectors we track.
Missed opportunities
Overall, the number of companies that have missed business opportunities because of a lack of available funding continued to fall and this latest figure is in line with the more normalised levels achieved for this question, last seen in May 2022.
However, at 46% (Sept 2023: 41%), the agricultural sector’s responses are higher than those of the UK, as a whole (39%).
Economic outlook
Confidence in the macroeconomic outlook among SMEs – including those in agriculture - has incrementally improved, achieving positivity for the first time in around two years, but it’s worth remembering that in November 2021, 75% of respondents were positive about the economy – by January 2024 this had reached just 46%, which is itself an improvement compared to September 2023 (43%).
It’s worth noting that, contrary to many other sectors, those working in agriculture are significantly more positive about the economy today than they were at the end of 2023.
Predicted business performance
On this measure, the agriculture sector is also significantly more upbeat than it was in September 2023, with many more (47%) saying they hope to expand in the year ahead (Sept 2023: 24%).
Gareth Evans, Head of Agriculture at Close Brothers’ Asset Finance, said: “The recovery in confidence, albeit cautious, among the UK’s small and medium business owners continues, is clearly positive news.
“However, our research reinforces the feedback we’re getting from the stakeholders in our key sectors that the recovery in sentiment very much depends which industry they operate in.
“Our commitment to the SME community is that we will continue to work with firms through the cycle, providing expert advice and building long-term relationships, as we’ve always done.
Methodology:*
All figures, unless otherwise stated, are from a Censuswide survey conducted in January 2024. The survey canvassed the opinion of over 1,200 senior members of the professions across the UK on a range of issues affecting their businesses.
