FTSE 100 slides as SMEs report lower exports

<p>The FTSE 100 has lost ground as SMEs report lower export volumes.</p>

The FTSE 100 has lost ground this morning (February 4th) as small and medium-sized enterprises (SMEs) in the UK report that their exports and domestic orders continued to fall in the three months to January.

According to the Confederation of British Industry's (CBI) latest quarterly SME Trends Survey, production was also found to have slipped, failing to meet the expectations of modest growth, but it is anticipated to increase in the coming three months.

With less activity over the last three months, numbers employed in the sector slipped marginally for the first time in three years, but SMEs predict an increase in headcount over the course of the coming quarter.

CBI head of economic analysis Anna Leach commented: "Better news on the domestic front is expected, with output and domestic orders set to rise modestly. But there is little sign of improvement in export prospects."

At 11:30 GMT, the FTSE 100 decreased by 0.5 per cent, shedding 35.1 points to 6312.1 points.

Learn all about CFD trading strategies and the FTSE 100 at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.