Yorkshire businesses facing tough conditions – chambers

YORKSHIRE businesses have revealed the economic challenges they are facing in a series of surveys across the region.

Bradford businesses are continuing to grow but have seen the pace slow in the last three months.

The latest survey from Bradford Chamber found manufacturers experience a slowdown in orders compared to the second quarter leading to a fall in future profit expectations.

It was a similar picture for the services sector although these businesses were more positive in terms of confidence and turnover levels.

Chamber president Stephen Wright said: “There should be no real surprises with the findings of the latest Chamber survey.  Everyone knows things are tough and that look set to continue for some time. 

“The additional round of quantitative easing, the problems in the euro-economy and the effects of the public sector spending cuts are all evidence of the current situation.  With that in mind, then, it’s good that the local business community can report, if not outstanding returns, at least some stability and a little growth.”

Hull and Humber Chamber of Commerce’s quarterly economic survey found that sales fell for 36% of companies over the last three months while only 23% increased them.

Export sales were stable but down on the previous quarter, with equal numbers reporting increases and decreases.

Dr Ian Kelly, chief executive of Hull and Humber Chamber of Commerce, said: “This quarter’s results are disappointing and suggest that the recovery in the Humber has not gathered momentum.  Sales results have been weak and there is growing concern about inflation.  Exporters are still outperforming the domestic market, but the global economic situation has affected performance there as well.  Cashflow remains problematic and more companies are cutting back investment plans than are increasing them.

“Investing in infrastructure, increasing capital allowances and reducing tax on empty properties would all encourage growth.  We are lobbying the Chancellor to include these measures in his Autumn Statement next month.”

In the Sheffield City Region, the survey’s results showed that balance sheets were in positive territiory in the third quarter but investment and cashflow remains difficult for business. Companies were more optimistic about employment prospects but export sales and orders had fallen.

Richard Wright, executive director of Sheffield Chamber of Commerce, said: “The results of the survey are concerning and disappointing news for the region, but not entirely surprising. There are positive signs in terms of profitability and turnover, but these are not as strong as they need to be.   

“The economic recovery will remain slow, but we are confident that we will avoid a further recession, albeit the survey shows how sensitive we are to traditional markets. Markets in less traditional areas like the BRIC countries are doing much better and we must continue to focus on growing trade in those areas.”