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Tuesday, 12th January 2010
The view that the UK is on the brink of leaving the recession has been echoed by the Thames Valley Chamber of Commerce Group following its latest Quarterly Economic Survey results for Q4 of 2009. Nevertheless, the figures have shown that growth is modest and must be supported and nurtured by the government.
Within the manufacturing sector there was an increase in export sales, export advance orders and profitability since the last quarter, with UK sales and advance orders remaining constant. And while turnover improved, cashflow remained stable. Key concerns for the manufacturing sector were exchange rates and inflation, with raw material prices sited as the primary concern. Manufacturers also noted their need for exchange rate stability so that they can forward plan.
Within the service sector, businesses also reported improvements in export sales, export advance orders and profitability, and noted that a high level of staff had been recruited without difficulty. The key concern for service sector businesses was ‘other overheads’.
Commenting on the results Claire Prosser, policy executive for the Thames Valley Chamber of Commerce Group, said: “These results contain some very positive features, notably the improvements in export sales and export advance orders. This boost must be nurtured in order to strengthen Britain’s trade position globally, and to help rebalance the economy away from an over-reliance on the public sector.
“It is now crucial that the government shows determination in its support of businesses, the wealth creators of the UK. In order to do this, they must ensure that additional business taxes are avoided and that the one per cent increase to employers’ National Insurance Contributions planned for 2011 is scrapped.
“Unless businesses in the private sector are the given support and freedom to create jobs and wealth, the UK’s economic recovery will be slower and we could face a double-dip recession.
“Nevertheless, the results continue to be a step in the right direction and we are pleased that businesses are showing buoyancy despite the uncertain trading conditions. The economic indicators are strong for 2010 and we hope that our members’ resilience has put them in good stead. We are appreciative of our members for taking the time to complete this survey, enabling the Thames Valley Chamber of Commerce Group to make these statements.”
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Quarterly Economic Survey
These results come from the recent Quarterly Economic Survey (QES) for Q4 carried out among Thames Valley Chamber of Commerce Group members for the months of October, November and December.
The QES includes feedback from both small and large businesses and is extremely representative of the UK business profile as a whole. Its results are made available to the Bank of England and other bodies.
About the Thames Valley Chamber of Commerce Group
The Thames Valley Chamber of Commerce Group works with businesses across Berkshire, Buckinghamshire, Oxfordshire and Wiltshire to help them achieve their full business potential through: meeting new customers; cutting costs; developing their workforce; influencing local decision makers; and arming them with business intelligence. Membership is available to all businesses.
For all press enquiries, please contact Marianne Creaney on 01753 870 518, email: mariannecreaney@thamesvalleychamber.co.uk
