Businesses positive for growth despite fragile economy – Chamber
BUSINESS in the Sheffield city region remain positive of future growth but are wary of a fragile economy, a report has revealed.
Figures compiled in the British Chambers of Commerce’s latest Quarterly Economic Survey (QES) offers an insight into the performance of companies in the manufacturing and services sectors.
While balances for the manufacturing sector remain positive and exports are still strong, there continues to be caution in a tough economic environment, the report suggests.
In the Sheffield city region, companies in this sector have seen small growth in UK sales and orders and are confident of positive turnover and profitability figures in the future.
The service sector shows mixed results, indicating a slight improvement while UK sales have enjoyed minimal growth but there is a decline in UK orders.
However, the report indicates that businesses in the Sheffield city region remain optimistic that future profitability can be gained.
However, for both sectors businesses are still facing difficulties in managing cashflow, with figures suggesting that this has been badly affected by recent incidents such as adverse weather conditions and the VAT increase.
Richard Wright, executive director of Sheffield Chamber of Commerce, said: “The results for the Sheffield city region are very much in line with the national results, albeit the manufacturing sector is actually growing slightly above the national average.
“The QES indicates two things. Firstly, manufacturing is doing well, but the service economy is still hurting. In the medium-term we need manufacturing to lead because it creates the wealth that flows out into the rest of the economy, but it doesn’t make it easier at the moment for many of our members.”
He added: “Secondly, recovery is not a straight smooth line – we should expect some peaks and troughs – and that it is very sensitive to world events outside our control.”
