Mixed bag from quarterly economic survey

THE latest survey of businesses by Birmingham Chamber of Commerce Group has produced mixed results.

While nearly a third of all businesses across the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) area are seeking to recruit, there has been a slowing in growth.

The second quarterly economic survey (QES) of 2012 – carried out in conjunction with the LEP – showed that the domestic market for manufacturers remained static with 41 per cent, the same as the previous quarter, reporting an increase in sales but the number with fuller order books dropped to 38 per cent from 41 per cent.

The export market showed a similar picture. Thirty eight per cent (down from 41 per cent) said sales had increased while 34 per cent (down from 42 per cent) reported increased orders.

However, most manufacturers have revised upwards plans for investment.

Twenty seven per cent (against 17 per cent in the previous quarter) said they had increased their investment in plant, machinery and equipment while 28 per cent, compared with 11 per cent, had spent more on training.

Exchange rates and competition remained the biggest areas of concern for manufacturers.

But there was good news on the jobs front with 31 per cent (up from 30 per cent in the previous quarter) saying they were attempting to recruit.

Andy Street, chair of the Greater Birmingham and Solihull Local Enterprise Partnership, said: “The LEP area appears to be more than holding its own against the backdrop of a tough economic outlook.

“Stronger investment in machinery, plant and training are all good indications that our companies remain optimistic about future growth. And it is especially pleasing to see that more businesses are looking to take on additional staff.”

“This is a trend we need to build on if we are to meet our aim of creating 100,000 new private sector jobs by 2020.”