Thursday, July 16, 2009

News: Chamber economic survey shows positive signs


The first signs of significant recovery in the Yorkshire & Humber economy have been revealed with a surge in business confidence over the past quarter.

The rise in confidence is a good indicator that the worst of the recession has passed. However, the recession remains both severe and damaging with figures also showing that many businesses continue to suffer from the extremely tough trading conditions.

The conclusions come from the Chambers of Commerce in Yorkshire & Humber as part of the Quarterly Economic Survey for the second quarter of 2009.

The major positive is the recovery in business confidence indicators. The number of companies expecting profitability to improve this year was up 18% from 26% in the first quarter of the year to 44% this quarter.

Manufacturing remains weak with more than half of all manufacturers are still reporting falling sales and orders.

The number of firms cutting jobs fell from 31% last quarter to 22% in this quarter. However, the number of firms increasing the size of their workforce was unchanged at just 12%.

Nick Pontone, Director of Policy for Yorkshire & Humber Chambers of Commerce said: "The rapid improvement in Yorkshire's business confidence is the first good news this survey has reported for 18 months. It is significant because increased confidence is a necessary prerequisite to any genuine recovery."

"Improved confidence does not yet signal a recovery. Confidence is still stubbornly low in parts of the region such as the Humber and Bradford and remains worryingly weak in manufacturing."

"These results suggest the economy has stopped getting worse but it is not yet getting better."

Yorkshire & Humber Chambers of Commerce article


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