Chamber's comment on economic survey
Tuesday, 12 Jan 2010
Reaction from across Yorkshire & Humber to the Chamber Economic Survey figures for Quarter 4:
Bradford Chamber’s President, Harold Robinson, said:
“Despite the toughest trading conditions and harshest economic climate for many a year, Bradford businesses are clawing their way back. Many are not yet out of the woods and those that are struggling should come to the Chamber to make sure that they are getting the best possible support. For our part, we’ll pass on the findings to the Bank of England and Yorkshire Forward, among others, and ensure decision-makers remain aware of what’s happening with the economy. It’s good to see new sales and orders coming in but worrying about export markets. As we’ve said previously, recovery will take some time. These figures are still coming from a low base line but it’s looking like a different place from 12 months ago.”
Commenting on Bradford Chamber's results, Steven Gash of Chartered Accountants Clough & Company LLP, which sponsors the survey, said:
“It is encouraging news to see domestic sales and confidence continuing on an upward trend. Profit expectations still lag behind those in both the Yorkshire & Humberside region and in the UK. The indicators are still there though that is little change in concern over raw material prices which I hope is not an indicator of any shortages in supplies that might impact on manufacturers ability to meet the increase in orders A basket of overheads continues to test service-based companies. Manufacturers are also voicing concerns about stoking inflation, probably due to quantitative easing, exchange rates and business rates as external factors they can do nothing about.”
Sheffield Chamber chief executive Nigel Tomlinson said:
“These figures are encouraging and indicate that we are now seeing an end to the recession. This region is one of the most optimistic in the country and we are particularly pleased to see that sales were generally up.
“However, we must remain cautious as many indicators are still showing poor trading conditions when compared to results two to three years ago. While we are confident that we are seeing a recovery it is a relatively weak one and there is still the danger of a ‘double-dip’ recession.
“Businesses will be the engine of any upturn and must continue to be supported through positive policy measures by the Government and City Council. We are working with all our partners to ensure the needs of our members are being heard.”
Ian Williams, Director of Policy at Leeds, York and North Yorkshire Chamber of Commerce said:
“These results do show some definite signs of improvement, and hopefully this could be an early indication that the UK has finally left this recession. However, with a number of critical measures still in negative territory it seems that there will still be far to go before we will reach full economic recovery.
Undoubtedly, the weak pound has helped strengthen our region’s exports and in particular the significant improvement in the service sector’s exports demonstrates that our country can still offer first rate services within the international market.
Both sectors are reporting significant improvements in their profit expectations over the next 12 months and this suggests that 2010 could be a better year for the region’s businesses compared to 2009 - slowly but surely business confidence is beginning to return.
Ensuring economic growth and a sustainable business environment are key priorities for the Chamber and we will continue to lobby the Government to ensure that policies are put in place in order to fuel economic recovery and avoid a double dip recession. Many businesses are showing resilience by coming up with innovative ways to survive this downturn, but any extra costs could cause serious problems, which is why we are calling on the Government to ensure that no new business taxes are introduced and that the planned hike in National Insurance for 2011 is scrapped”.
Steven Leigh from the Mid Yorkshire Chamber said:
“A number of key balances have continued to improve since our last QES analysis for Quarter 3 this year. These improvements, particularly in Home and Export Sales and Order Intake are most welcome. However, the Q4 survey has also given rise to some unexpected results which may be regarded as timely reminders of the fragility of the business sector and our recovery out of recession."
"There are also some encouraging signs that manufacturers and exporters are now seeing some light at the end of the tunnel, after longer than a year of extremely difficult trading conditions. Uncertainties about prospects for the year ahead together with downgraded estimates of turnover and profit expectations are matters of serious concern. Raw Material and other overhead costs remain a worry to our members, and serious misgivings are now also being expressed about inflation and exchange rates. This dip in confidence backs up anecdotal evidence from our members suggesting that the recovery is likely to be slow and far from smooth."
"With a General Election due within months this uncertainty is likely to continue until such time as the election has taken place. Despite the poor state of our Public Finances, we consider it essential that in the year ahead the Government should prioritise business at the heart of the economic recovery, and we now need to ensure that this priority is supported by policies that stimulate enterprise, as any additional taxes on business will be bound to prolong the period of recovery."
"The Chamber will continue, at every opportunity, to vigorously lobby Government for a genuinely business-friendly agenda which will encourage investment, create employment and reward enterprise. This will be a major factor in our economic recovery.”
Richard Kendall, Policy Executive at Hull & Humber Chamber of Commerce, said:
“The signs are that the recession in the Humber has ended. Businesses and their employees have made enormous efforts to get through an extremely difficult period and they deserve to be congratulated for a positive set of results.
“Most businesses now expect to grow over the next 12 months, but profitability expectations are relatively low and the gains last quarter were smaller than in the one before that. Employment indicators are still negative because businesses have to be cautious when creating jobs, suggesting that it may be some time before we see significant falls in unemployment.
“2010 promises to be a better year for the local economy, but the gains firms are making are fragile and success is not guaranteed. The policies adopted by this Government and the next one, whichever party forms it, will be crucial for determining how the recovery takes shape. Increasing taxes or regulation, or cutting back on critical infrastructure projects, would make it harder for businesses to grow and put our competitiveness at risk. The political parties must give more details of how they will support business growth while at the same time tackling the deficit.”
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