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Thursday, 15th October 2009
The UK is on the brink of leaving the recession, according to the recent British Chambers of Commerce’s Quarterly Economic Survey (Quarter 3). The data, from over 5,500 companies, shows that there has been good progress in both the manufacturing and service sectors, with most key indicators improving in the last quarter.
The results have been echoed in the Thames Valley and support the view that the decline in economic activity is coming to an end. Commenting on these results Claire Prosser, policy executive for the Thames Valley Chamber of Commerce Group, said: “Manufacturers have reported an improvement in profitability since the last quarter confirming the upward economic trend within the Thames Valley. And while turnover improved, cashflow remained the same. Exchange rates and inflation remain the key concerns. UK sales remained constant, as did UK orders with export sales and export orders also remaining constant. Employment remained steady and attempts have been made to recruit staff mainly for full time jobs which resulted in difficulties. This was in the skilled/manual/technical and professional/managerial sectors, highlighting the need for such key workers.
“In the service sector, there was also good news where profitability improved since the last quarter. Turnover also improved; however, cashflow either remained static or worsened, highlighting the need for prompt payment from company to company. Employment and employment expectations remained constant, emphasising stability in companies’ workforce prospects.”
“One of the most encouraging aspects of these results is the fact that confidence has strengthened dramatically in both manufacturing and services. In the face of the recent challenges, Thames Valley businesses are showing resilience.
“Although the results are encouraging, the economy is, nevertheless, still frail and the emerging recovery is vulnerable; therefore, measures are needed to ensure that serious risks of a setback can be overcome.
“It is vital that the government now displays determination to support wealth-creating firms. Unless business confidence is nurtured and allowed to drive the economy out of recession, the country’s recovery will be stunted, and we could risk of a W shaped recession.”
“We are appreciative of our members for taking the time to complete this survey to enable Thames Valley Chamber of Commerce to make these statements.”
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