Plenty to cheer, little to fear says Chamber survey

DESPITE a weakening of demand in the euro zone causing exports to drop, Greater Manchester’s businesses are in good health, according to the Chamber of Commerce’s latest survey.

The results of the Quarterly Economic Survey revealed that job creation had been strong in the third quarter, rising to its highest level since before the recession, contributing to the Chamber forecasting that UK GDP growth will hit 3.1% this year before dipping to 2.8% in 2015.

The QES states there appear to be few blots on the economic landscape, with “remarkably little” to concern company bosses.

“We monitor prices, pay, raw materials, inflation, competition, business rates and taxation on a regular basis. No significant problems are apparent at this stage in the recovery.

“Businesses are confident about prospects for turnover and profits and for the moment appear to be unconcerned about the risk of interest rate rises or exchange rates.”

The Chamber believes an increase in interest rates from its record low of 0.5% is “unlikely” in the remainder of the year.

On the question of exports, which fell for both manufacturers and service sector firms, the report says: “Despite the improvement in currency outlook, the main problem appears to be the deterioration of demand conditions in European markets.

“This, a result of the slow recovery in Euroland, geo-political uncertainty in Eastern Europe and the decline in the absence of growth in the Russian economy.”

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