Business confidence on the rise in St Helens
Posted by John Perrian on Friday 8 January 2010
Confidence has continued to rise within the St Helens business community, according to the results of the latest British Chambers of Commerce Quarterly Economic Survey(QES).
The survey for the last three months of 2009 showed further evidence that the local economy is recovering, although trading conditions have remained difficult in some areas.
175 members of St Helens Chamber – employing almost 5,000 people – responded to the survey, made up of 36 manufacturing companies and 141 service sector companies.
Results in the service sector have risen across the board, with confidence levels reaching early-2008 levels and employment expectations moving out of negative balance for the first time in over a year.
The manufacturing sector experienced progress across several indicators, including the home market and exporting, with manufactoring confidence has jumped significantly to levels not seen since the end of 2006 however cash flow remains a concern and training budgets were slashed.
One of the most encouraging features of the latest results is an improvement in investment in plant and machinery for the second quarter in succession in both sectors.
Competition remains the big concern for St Helens businesses, while they have also felt the pressure to raise prices due to the increase in raw material costs and overheads.
Sara Williams, Enterprise Development Director at St Helens Chamber, said: This quarter’s QES results point to a more positive economic outlook for St Helens, but there is still considerable weakness in the economy, especially for the manufacturing sector, and it is far too early to say that recovery is secure. The Chamber will continue to provide services to help businesses deal with the recession and develop through the upturn. We would encourage companies to contact our Business Taskforce to see how we can help them”.
Other key results show:
- There has been further improvement in the domestic market for both sectors – up to early 2008 levels.
- Actual workforce levels improved overall yet were lower than predicted. Employment levels into the first quarter of 2010 are expected to improve for the third quarter in succession, potentially reaching second quarter 2008 levels.
- Investment plans have increased for both sectors for the second quarter in succession but remain in negative territory.
- Training budgets are up to 2008 levels for the service sector, however, manufacturing training budgets have been cut markedly and are at the lowest level for a year.
- 24% of all respondents attempted to recruit in the last three months, down one point from the last quarter.
- Confidence in the banks remains fairly good for 60% of the respondents.
- As a result of a tightening in working capital, 44% of St Helens businesses had cut capital expenditure; 29% had cut stocks; 24% had cut jobs; 27% had made late payments and 6% had refused orders – there was little change from Quarter 3.
Sara Williams added: St Helens Chamber will continue to work closely with St Helens Council, MPs and other agencies to ensure that there is support for local businesses through the current downturn and to ensure that local business has a voice at the highest levels of Government. ” “It is important that the Government keeps a continued focus on limiting the impact of recession; otherwise the risk is that any recovery will be short lived.”
To download the full report please click here.
Commenting is now closed.