Weak economy shows signs of recovery, says BCC

THERE are “mountains to climb” before the UK ecomony is fully “back on track”, according to the latest quarterly economic survey from the British Chambers of Commerce.

The new survey, made up of responses from more than 7,000 businesses, shows that most key balances in both the manufacturing and service sectors strengthened in the first quarter of 2013.

In the North West private sector job creation in the region remains positive and the employment expectations reported by manufacturers are at the highest level since the second quarter of 1998.

Nationally, export balances in services were particularly strong, with deliveries and orders near the all time high in 1994.

Business confidence and investment were also up, and cashflow, although still relatively weak, is now positive for both manufacturing and service sector businesses.
 
However, despite these improvements, most indicators were still below their pre-recession levels seen in 2007.

John Longworth, BCC’s director general, said: “Although the progress seen in the first quarter of this year is modest, it is progress nonetheless. Business confidence has increased further, and it is really encouraging to see export orders and deliveries near to their record high levels in services.

“This showcases the determination and ambition of our businesses here in the UK, despite continued pressures both at home and abroad. But the fact remains that the economy is still not strong enough.”

The environment in the North West construction industry remains tough. However, manufacturers and service sector businesses have seen relatively stable levels of confidence and investment, though they remain subdued by historical measures.

Mick Mayor, chair of the Chambers of Commerce North West, said: “The results for the North West are generally positive and point to an improvement in the business environment for firms in the region.

“It was particularly encouraging to see an increase in the key export indicators for both manufacturing and service firms. It was also good to see the employment indicators remain strong and they show how the private sector continues to create jobs during these difficult economic times.”