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Small to medium-sized enterprises (SMEs) in the UK plan to create over 450,000 new jobs in the next 12 months, new research has suggested. 12/11/2012

According to GE Capital's latest European SME Capex Barometer, the companies surveyed indicated that they intend to invest a total of £48.5billion over the next year.

The figure represents a 23% expected increase in investment compared to the first quarter of 2012.

In addition to the recruitment of new staff, this expenditure includes upgrading existing equipment and committing to new business opportunities.

Companies that are not prepared to increase their investment this year cited the uncertain economic environment as the main reason for their caution.
 
John Jenkins, chief executive of GE Capital UK, commented, 'After a period of under-investment brought on by broader economic uncertainty, it's good to see UK businesses once again looking to increase investment in capital expenditure and creating new jobs.

'In particular, a drive to modernise and upgrade equipment should spark a corresponding increase in productivity. This is a welcome sign for the UK economy and will provide a boost to wider economic recovery.'

The news comes after the latest Chartered Institute of Personnel and Development (CIPD)  Labour Market Outlook showed SMEs in the private sector are most optimistic about increasing their staff numbers in the coming months when compared with other types of UK companies.