Service sector returns to pre-recession business levels in Herefordshire & Worcestershire
THE economy in Herefordshire and Worcestershire is being driven by a healthy services sector with companies in the counties reporting business levels above those seen pre-recession.
The Herefordshire and Worcestershire Chamber of Commerce said analysis of its first quarter economic survey suggested 2014 has started on a very positive note for many businesses.
It said amongst the encouraging economic news from the first quarter was an increase in export sales (+23%), with overall figures showing a 46% increase for orders and advance bookings in the domestic market.
Employment is also set to improve with 35% of respondents expecting their workforce to increase over the next three months, and 74% have already attempted to recruit full-time staff, an increase of 14% on the last quarter.
Mike Ashton, chief executive of the chamber, said: “The results from quarter one show that businesses are working hard to continue to drive economic recovery; this is great news along with the increase in employment over the last three months.”
“Amongst local businesses confidence is high and the national manufacturing balance for export sales increased from 35% to 40%, this is the best level since Q4 1994.”
The survey was completed by 299 firms with 25% from the manufacturing sector and the remaining 75% from the services sector.
Overall, 34% of respondents said they were operating at full capacity, with 60% operating below full capacity. More than half (52%) said they thought UK sales had increased (1% up on the last quarter) and almost two-thirds (65%) expect profitability to improve over the next 12 months, with 70% expecting turnover to improve in the next 12 months.
In export sales, 17% of firms reported an increase with 22% saying levels had stayed constant and 4% reporting a decrease.
During the Q1 period, 27% of the respondents said their workforce had increased, with 35% of expecting their workforce to increase during Q2. However, 39% of respondents said they had experienced problems recruiting skilled manual / technical workers.
