Little to cheer in NW Chambers’ survey

THE ongoing impasse in Europe over economic policy and the future of the euro is starting to erode demand for manufacturers in this region, according to a survey.

Chambers of Commerce North West’s Quarterly Economic Survey canvassed the opinions and attitudes of more than 1,500 companies across the region.

The survey found that in the second quarter manufacturers had their weakest quarter so far this year, with every key indicator falling apart from investment, which although in growth, is growing modestly.

It found too that while the region’s service sector is suffering, the fall in inflation has helped to sustain demand, especially in retail.

From a positive perspective, recent increases in the number of people in employment helped improve domestic demand.

The QES attributes this to a rise in self-employment and part-time working.

Mick Mayor, Chair of Chambers of Commerce North West warned that falling demand in Europe could spread to other key export markets.

“Without substantial domestic demand support for the region, the external demand conditions in the euro zone, that we expected to ease with the debt reduction measures and austerity, pose the greatest risk to the region’s growth.

“Whilst mainly confined to Europe at present, there is a knock on effect to emerging market demand and in the coming months we will face the uncertainty over whether the United States’ leaders will come to an agreement over the tax rises and budget cuts.”

Mr Mayor re-iterated called for infrastructure investment in the region to create jobs and address connectivity and energy supply challenges.

“This would get the construction sector moving, generate spill-over economic activity and increase the long term competitiveness of our region.”