North West businesses expect growth despite economic uncertainty

NORTH West businesses are more confident about their own prospects than that of the wider economy over the next twelve months, a new survey shows.

Although they continue to feel affected by economic uncertainty and market volatility, well over a third (37%) expect to increase turnover by more than 5% in the year ahead, despite just over a quarter (26%) being confident the economy will return to healthy growth, according to a survey by Yorkshire Bank.

Despite their concerns about the economy, 41% are planning to invest at least 5% of their turnover back into their business over the next 12 months with the leading investment priorities being new staff, new equipment, training existing employees and developing new products and services.

Fluctuating fuel prices and rising corporation tax are the most pressing concerns, with a third (33%) and a fifth (21%) citing these issues as the key factors in their businesses’ future growth respectively.

Brian Colquhoun, regional director for Yorkshire Bank, said: “Businesses are clearly more confident about their own prospects, and in control of their own destiny, than they are for the wider economy, despite the impact of rising fuel and materials prices.

“Our research highlighted what North West businesses feel will help them and the economy, with increased consumer spending and confidence (22%) and lower taxes (19%) coming out as the key drivers to economic growth.

“It is inevitable that there will continue to be bumps in the road to economic recovery, but the region’s businesses should continue to focus on their own strengths.”

Across the industries, IT and telecoms businesses appear to be the most confident with more than half expecting increased turnover of at least 5% in the next 12 months. Healthcare and education businesses are the least confident with only 32% and 23% respectively expecting similar growth.