Exports offer only bright spot in Chambers’ survey

SERVICE sector companies in the West Midlands are increasingly turning to overseas trade to improve their fortunes as the economic downturn continues to bite.

A survey for the last quarter of 2012 carried out by the West Midlands Chambers of Commerce (WMCC) showed most companies, especially manufacturers, struggling to maintain their performance levels.

The Chambers said that, overall, the results of the survey were “particularly disappointing”.

But 46% of service companies, including transport firms, retailers and wholesalers, marketing and media, legal and accountancy businesses, recorded increased exports compared with 37% in the last quarter of 2011.

Home sales showed a marginal improvement with 38% reporting increased sales compared with 37% a year ago.

Job prospects, possibly increased by seasonal demand, showed 24% increasing their labour force, down 5% on Q4 in 2011.

Sales for manufacturers in the region continued to be a struggle. Some 31%, down 10% year-on-year, reported an increase in UK market sales, while those experiencing fuller order books dropped to 30% from 37%.

Overseas sales showed a drop on last year with 36% (against 37%) increasing sales and 32% (against 34%) boosting their exports.

Mike Ashton, spokesman for the WMCC, said: “These result are particularly disappointing because the drop in inflation from 4.8% a year ago to the current 2.7% has not had a huge impact.

“We were expecting trading conditions to improve as inflation fell and conditions improved in the Eurozone but this had not proved the case.

“So we again call on the Government to make trading conditions easier for business by cutting red tape and improving access to finance. This is imperative for reducing the region’s unemployment statistics.”