Chamber’s quarterly survey suggests improved outlook

THE economy saw growth in the second quarter of this year, according to research by Greater Manchester Chamber of Commerce.

The organisation’s Quarterly Economic Survey (QES) also found employment prospects are improving, but modestly, due to improving confidence in both the manufacturing and service sectors.

The results from the survey of around 700 companies in Greater Manchester came after the Office for National Statistics revised its figures and said the national economy did not experience a double-dip recession in the first quarter of 2012.

John Ashcroft, the chamber’s new chief economist, revealed the results at a briefing for business leaders this morning.

He said: “Our latest QES results suggest another period of growth into the second quarter of the year and the prospects for employment continue to improve, albeit at a modest pace.”

He said output had been slightly higher this quarter driven by an improved performance in manufacturing in both the domestic and international markets.

This is driving in increase in confidence that turnover and profits will improve in the months ahead. The service sector was driven forward by export activity in both orders and deliveries, he stated.

“At home both order trends were stable and, whilst deliveries appeared to slip slightly, confidence in turnover and profits was particularly strong looking ahead,” he added.  

“Overall, these results suggest the UK economy is recovering and Greater Manchester is a contributor to and a beneficiary of that trend.”

The data suggests inflation may fall faster than most analysts expect.

Overall, the survey found businesses were less worried about inflation, interest rates, taxation and business rates, but slightly more concerned about competition and exchange rates.  

The Chamber believes these concerns may reflect the fact that the weakness of sterling has been of little benefit to the UK economy, due to our dependence on imported commodities such as energy, raw materials and manufactured goods.

The results of the QES were revealed at the Chamber’s Council and Quarterly Economic Briefing at HSBC, Spinningfields, Manchester.