Staffordshire economy stagnating despite manufacturing uplift
Staffordshire’s economy is continuing to stagnate, despite improvements to the county’s manufacturing sector, a new survey has concluded.
The latest Quarterly Economic Survey from Staffordshire Chambers of Commerce shows that in the manufacturing sector, the proportion of firms reporting improved domestic sales and orders decreased in Q3 to their lowest level since the start of the year.
In contrast, export sales and orders improved, as stronger recent economic growth, devaluation in sterling and investment in a number of key markets helped support demand for UK products.
However, in the services sector, traditionally the main driver of UK economic growth, domestic sales and orders remained static with small variations in Q3, as did the sector’s employment expectations, investment in training, and confidence in profitability.
The chamber said almost all services indicators remained below their pre-EU referendum levels, with consumer-focused businesses reporting weaker growth rates compared to B2B firms.
It said the muted results made clear the need for the budget to provide a stimulus to the economy – and begin to address some of the issues undermining Staffordshire’s growth prospects, including skills gaps, high upfront costs and aging infrastructure.
Sara Williams, chief executive of Staffordshire Chambers of Commerce, said: “The current political uncertainty, currency fluctuations and the unsubstantive Brexit process are continuing to weigh on business growth prospects but once again Staffordshire businesses are proving their resilience and determination to succeed and prosper. At a national level companies in all sectors and locations of the UK, indicate for many, growth is static.”
Key results of the Q3 QES:
• The manufacturing sector, saw indicators of domestic activity, and investment in training continue to decrease in the quarter despite national trends increasing.
• The survey shows export sales and orders in manufacturing remain solid however there are predictions of decreasing export activity for the services sector in the future months.
• Compared with three months ago, businesses continue to report ever improved confidence in achieving an increase in turnover and profitability in the year ahead.
• The number of firms expecting prices to rise has decreased across both sectors.
The spotlight will be thrust on the county’s business community next month when the Staffordshire Business Festival returns. Running between November 7-9, it kicks off with an event at JCB, followed by a second day of 40 business support workshops spanning a broad range of themes from leadership to branding.
