Thames Valley Businesses are Stable

Tuesday, 7th April 2009

The UK recession is very serious and is likely to continue for some time, according to the recent British Chambers of Commerce Quarterly Economic Survey (QES). The data from over 6,500 firms, employing nearly 900,000 people, highlights a worrying deterioration in manufacturing, with falls to record lows in almost all indicators.

Despite the dismal national figures, however, Thames Valley businesses appear to be weathering the storm.

In the manufacturing sector, over half of businesses reported an improvement in both export sales and export orders. Meanwhile, in the service industry, UK sales remained constant, as did export sales and export orders.

Again, in the manufacturing sector, 50 per cent of businesses reported improved turnover, and 40 per cent of businesses stated that their profit had remained stable. In the service industry, 37 per cent of businesses reported an improvement in profitability and 58 per cent reported that prices had remained constant.

100 per cent of businesses in the manufacturing sector did, however, stress that exchange rates were a concern and in the service sector 31 per cent of businesses said that inflation and competition were a worrying.

Commenting on these figures, Claire Prosser, policy executive for the Thames Valley Chamber of Commerce Group, said: “Although results from the Thames Valley are predominantly stable, businesses in the region are concerned and there is a clear need for corrective action. The Government must act forcefully to ease the recession and the Budget is a good opportunity to show businesses that it is doing everything possible to support them. It is vital that these businesses have the freedom to create jobs and wealth. The Thames Valley has a strong economic record and high entrepreneurial spirit which is reflected in our membership profile.”

Anne White, head of International Trade at the Chamber, said: “Although the national results are worrying, the results state that Thames Valley businesses are continuing to take advantage of the export opportunities that have come about due to the devaluation of the pound. It will be these confident businesses that will drive the UK out of the recession and the Government must offer them all the support they can.”

For businesses interested in export the Chamber, in conjunction with the European Business Assembly, will be holding an International Agriculture Conference on Friday 12 June at Henley Business School. For more information on this conference, call Customer Services on 01753 870 500.