Sentiment improved among small business owners over the first quarter, with all major sectors seeing a rise in confidence, a Federation of Small Businesses (FSB) survey found.

However, the cost of living squeeze is still holding back growth, with 92% of SMEs facing higher costs in the first quarter than in the same period last year.

In relation to inflation, the majority of SMEs (92%) said their costs were higher when compared to the same period last year, with utilities being the main culprit (63%). This was followed by labour (45%), inputs (44%), and fuel costs (40%).