Confidence improves in ‘timid recovery’

BUSINESS confidence has “improved significantly” in Greater Manchester according to a quarterly economic survey by the city’s chamber.

It found manufacturers had improved overseas orders and seen a significant improvement in cash flow and confidence.

However only 16% of companies reported they were working at full capacity compared with 33% last year. Also 74% said they had no difficulty finding staff, compared with 44% last year, indicating more qualified staff are looking for jobs.

In the service sector some 25% of respondents were working at full capacity compared with 35% last year. Similarly 63% of service companies had no difficulty in finding staff compared with 54% last year.

Ilona Krohn, principal economic adviser at Greater Manchester Chamber, said: “There has been a marked improvement in business confidence, despite continued deeply negative indicators across the board.

“Construction and manufacturing continue to suffer. Our survey seems to reflect the fact that confidence is starting to return after all the doom and gloom earlier this year.”

Ms Krohn added that it was a “timid recovery” which the chamber viewed with caution.