Slow recovery sustained in Yorkshire
ECONOMIC recovery in Yorkshire continued in the third quarter but at a slower pace than earlier in the year, according to a new survey.
Figures from the Yorkshire and Humber Chambers of Commerce show more than a third of businesses saw sales rise in the three months to September, down 5% from the second quarter but still higher than the same period of 2009.
Almost half of the firms who responded said they were taking on new staff, up 12% from last year, with one-in-five increasing their capital investment.
Despite concerns about the effect of forthcoming public spending cuts and wider uncertainty over the economy, 46% of businesses expect profitability to improve in the next three months.
Nick Pontone, director of policy for Yorkshire and Humber Chambers of Commerce, said: “These figures provide strong evidence that whilst the speed of economic growth has eased during the past three months, businesses are still growing and feeling confident about their own prospects for the future.
“The number of firms recruiting continues to rise and investment levels are creeping up which are both welcome signs of economic recovery. We don’t expect the strong growth of the second quarter of 2010 to be repeated this quarter, but a slower pace of growth should not be interpreted as being on the path to a double dip recession.
“The evidence still points to a bumpy private sector recovery and Yorkshire and Humber is faring well compared to other parts of the UK.
“The next few weeks will be dominated by the impact of public spending cuts but it’s vitally important that there is also a clear focus on how to boost private sector growth.”
The results of the Bradford Chamber of Commerce quarterly economic survey also point to a slow recovery but not signs of a double-dip recession.
The service sector saw sales rise both home and abroad although an improvement in order books for exports was not matched domestically. Sales and orders fell for manufacturers while turnover declined in both sectors.
Bradford Chamber president Dr Harold Robinson said: “We’re seeing businesses holding their own and pulling through from a very difficult two years. Despite ever-tightening margins they’re trying to looking after their staff and find new ways of working, which is to be commended.
“They know that things may well get even harder after the spending review next week and so, going forward, we’re looking to both central and local government to help ensure that the best possible business support is in place.”
In Leeds, York and North Yorkshire 42% of service sector businesses and 37% of manufacturers expect profitability to improve over the next 12 months, unchanged on the previous quarter.
Manufacturers saw no change in export sales and orders although there were rises at home and abroad for orders from the service sector.
Ian Williams, director of policy at Leeds, York and North Yorkshire Chamber of Commerce, said: “It is encouraging to see that the Leeds, York and North Yorkshire economy is still on track for recovery and that there are no signs yet that the UK will relapse back into recession.
“However, we are not fully out of the woods yet and we know that things will be very different following next week’s Comprehensive Spending Review. Businesses accept the need for austerity measures to tackle the deficit, but the Government also needs to ensure that it has a strategy for growth as well as a strategy for cuts.”
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