Many small businesses across the UK are expressing concern that the weak pound is hurting their business profits as concerns over the economy in the UK will likely cause the Bank of England to print once again this year. However, the news has already caused the sterling price to drop dramatically.
Over half of all SMEs in the UK stated that they need the pound to get stronger while a very small 16% of owners reported that they would like to see the price fall further. The research was carried out by Western Union Business Solutions and the Financial Times.
Already this year the pound has dropped by about 7% against the dollar and has slid down about four percent against the worth of the euro. News that the Bank of England will continue to do more monetary easing last week did not help.
The FSB (Federation of Small Businesses) is concerned that the weaker pound is going to hurt many businesses across the UK in particular importers that have to pay higher bills to their suppliers overseas and then make a smaller profit yet.
National policy chairman for the FSB, Mike Cherry, stated that the continual downward fall of the price of sterling is making it cheaper for overseas buyers to purchase UK services and goods which helps out small UK exporters but hurts many other businesses that rely on imports. IN addition, the price difference leads to higher costs for all manufacturing companies.
Earlier this year the Bank of England stated that it was happy to see the pound get weaker because it has helped out many of the exporters in the country and therefore has helped to boost the economy some.