Contrasting fortunes shown in Chamber survey

BUSINESSES in Greater Manchester are in general feeling more positive about growth and job creation, according to a major survey.

The Quarterly Economic Survey of a record 803 businesses by Greater Manchester Chamber of Commerce for the second quarter of this year, presents an encouraging, yet mixed picture of sentiment in the city region.

While financial and professional services firms based in the city centre are bullish, the picture is nowhere near as positive in the construction sector with low levels of orders.

Dr Brian Sloan, head of business and economic policy at the Chamber said: “The picture is more positive than in the first quarter, we can see that the recovery is ongoing and slow, but there are some positive signs.”

He said within the city region there is a clear North-South divide with the city centre and boroughs such as Trafford and Stockport faring better than Oldham and Rochdale in the north.

The retail sector, like construction, is weak, as a result of low consumer confidence and a rise in the cost of living, caused by commodity price hikes.

Dr Sloan said he expects interest rates to remain low until next year, but expressed concern that some manufacturers are reporting wage inflation pressures in the QES Survey.

He said: “Growth will remain slow for 2011, as we anticipated it would, and certain sectors and areas will experience periods of difficulty. However business investment in the year ahead should help create jobs and drive better growth in 2012.”