Findings reveal glimpse of ‘sunlit uplands of recovery’

THERE are “mountains to climb” before the UK ecomony is fully back on track, according to the latest quarterly economic survey from the British Chambers of Commerce.

The new survey, made up of responses from more than 7,000 businesses, shows that most key balances in both the manufacturing and service sectors strengthened in the first quarter of 2013.

Export balances in services were particularly strong, with deliveries and orders near the all time high in 1994.

Business confidence and investment were also up, and cashflow, although still relatively weak, is now positive for both manufacturing and service sector businesses.
 
However, despite these welcome improvements, most indicators were still below their pre-recession levels seen in 2007.

John Longworth, BCC’s director general, has urged the Government to support business confidence and foster what the organisation predicts is likely to be modest but gradual economic growth this year.

Mr Longworth said: “Although the progress seen in the first quarter of this year is modest, it is progress nonetheless. Business confidence has increased further, and it is really encouraging to see export orders and deliveries near to their record high levels in services.

“This showcases the determination and ambition of our businesses here in the UK, despite continued pressures both at home and abroad. But the fact remains that the economy is still not strong enough.

“The fall in most employment balances is disappointing, and reminds us that a strong labour market cannot be taken for granted.”
 
“We should not be satisfied with a long and tortuous road to recovery. These results provide a glimpse of the as-yet-distant sunlit uplands of recovery. We must be proactive, bold and forthright to bolster business and foster every shred of growth as this will propel our economy forward during the months ahead.”

Meanwhile, unsettled economic fortunes look set to continue in Yorkshire, according to a separate quarterly economic survey released today.

The latest results from Bradford Chamber of Commerce revealed that confidence fell a little during the first quarter of 2013, and sales and orders are still hard to come by for many firms.

The Chamber said the “topsy-turvy” nature of economic trends over the last few years will probably continue if the report’s findings are accurate, as a promising end to 2012 was not followed up in early 2013.

It said as a result, hopes of increased investment for many firms are side-lined for now.