Confidence improving says key chamber survey
BUSINESSES in Greater Manchester are showing resilience in the face of the challenging economic environment, according to a major survey.
The Quarterly Economic Survey of 800 businesses by Greater Manchester Chamber of Commerce, reveals an improvement in confidence in the early part of this year, compared with the last three months of 2011.
The Chamber expects city region’s economy to have grown so far in 2012 and that Greater Manchester and the UK economy should avoid a double dip recession.
Chief economist Dr Brian Sloan said: ““The usual correlation between our results and the national picture, assures us that on this performance the UK economy will avoid a double dip into recession after posting a negative growth figure for the final quarter of 2011.
” However challenges remain and the key to the recovery is business investment.
“Some describe it as a zig-zag road to recovery, we prefer to stick with a low growth environment because overall we are moving in the right direction.”
Overall the QES results indicate a further weakening of the domestic market but export demand is clearly having a positive impact on investment intentions and this will help growth and job creation should this be sustained.
The survey reveals signs that construction is recovering, though it is the larger firms that are reporting this.
In general smaller businesses in this sector remain challenged by reduced household spending and may not yet be engaged as contractors on larger projects.
The service sector is making progress and this quarter the underlying results, excluding the financial and professional services sector in the city centre, show a better performance.
Dr Sloan said: “Exports continue to drive performance and there is a marked difference in the performance between those businesses that do export and those that don’t.
“To what extent the relative weakness of Sterling is having on the level of exports is unclear, but what is clear is that there are opportunities for British businesses overseas.
