The amount of small and medium-sized businesses that are cutting jobs has declined, according to a survey carried out by Clifton Asset Management (CAM). The survey revealed that the percentage of small firms letting go of staff has declined from 34% in spring to 28%.

However, 52% of SMEs surveyed believe the economy will remain in the doldrums for another 12 months or more, with just 12% forecasting that the UK will be out of recession within six months.

"Our survey is starting to reveal real cause for hope, on the jobs front at least, that the worst is over. However, SMEs are at the eye of the storm and over half believe the recovery will be long and slow. This seems to chime with forecasts that we could be into 2011 before the recovery is properly under way," said Anthony Carty, director at CAM.