Small Businesses confidence fell in third quarter

Small Businesses confidence fell in third quarterAccording to a new survey, confidence among the small businesses in the UK fell during the third quarter of the year.

The Federation of Small Businesses (FSB) said on Monday that low demand from consumers as well as a lack of credit continued to hinder growth prospects in the country. The FSB's "Voice of Small Business" index fell six points to -4.5 in the third quarter.

The company found that the business confidence fell in ten out of twelve regions in the UK among small businesses. The company also found in the survey of more than 2,600 companies that even as services sector and small manufacturers continued to do well, the businesses that relied on consumer spending lost confidence level during the quarter.

John Walker, the FSB's National Chairman, said, "The message is clear though -- businesses want to grow and invest but they need a helping hand to do so."

The FSB said that businesses looking to grow were not able to expand because of the lack of credit. The company found that the number of loans requests not granted has increased in the quarter. Finance minister George Osborne has already promised steps to improve the credit availability and the government has announced the creation of a business bank for extending credit to the industry.