Local economy set for take-off – Chamber

GREATER Manchester’s economy is set to grow by 10% over the next three years.

Figures released by Greater Manchester Chamber of Commerce (GMCC) in its latest Quarterly Economic Survey (QES) indicate strong growth at the end of 2014 and strong growth until at least 2018.

More than 70 business leaders have gathered at GMCC’s new  headquarters in Deansgate, Manchester, to hear the results of the survey which was completed by in excess of 500 businesses.

The survey shows further confidence in turnover and profits with the outlook for employment continuing to improve while it is predicted inflation will remain well below the 2% target and investment will increase.

Commenting on the Manchester Index, which is derived from the QES results and is an early indicator of trends in both the Manchester and UK economy, Dr John Ashcroft, chief economist at the Chamber, said: “The latest data points to a strong finish in the final quarter of 2014.

“The index improved in the fourth quarter from in Q3, driven by export confidence returning to the manufacturing and service sectors following the setback in the third quarter.

“The outlook for home orders and deliveries improved in both the service sector and the manufacturing sector. The export outlook also improved significantly with an increase in manufacturing orders and deliveries for international markets.

“Businesses seem confident about prospects for turnover and profits, and are unconcerned about the risk of interest rate rises or exchange rates movements. The ever present challenge of competition however remains intense.”

According to the QES data, employment strength also moved to a new high in the quarter, with employment expectations improving significantly in manufacturing.

The Chamber’s economic outlook for 2015 predicts growth of 2.9% for the UK, slowing slightly to 2.8% in 2016 and 2017.

Inflation will average 0.8% for the year as a whole, before rising towards the end of the year.

Earnings are expected to rise, government borrowing will fall and the increase in employment is set to continue.