Partner Article

Confidence remains strong amongst Northern businesses

Challenging business conditions in the North of England have not put a dampener on spirits, according to the latest Confidence Index from chartered accountants’ organisation, ICAEW, and Grant Thornton UK.

The Business Confidence Monitor (BCM) recorded a Confidence Index score of 9 in the North, with a significant rise from -7.7, which was recorded in quarter four last year.

Conditions in the labour market have improved over the last 12 months, according to ICAEW, and companies reported a 2.6% growth in employment rates over 2012 to quarter three.

ICAEW Regional Director Keith Proudfoot says: “Although key performance indicators have weakened this year, with slowing rises reported in turnover and reductions in domestic sales, businesses in the region do appear to anticipate decent conditions ahead.

“As a region, unique in the UK, that exports significantly more than it imports, it is good to note that export performance has held up well in 2012, despite a backdrop of slowing world trade growth and a recession in the eurozone where just under half of the region’s exports are sent.

“This quarter, firms report export sales growing over the past year by 3.7%, a broadly unchanged growth rate from the past two quarters.

“Companies in the region also anticipate this steady export growth continuing in the future, predicting a 3.5% rise over the coming 12 months.”

Despite positive trends, job creation in the North of the UK does appear to be slowing, and firms reported just 0.6% rises in staff levels over the past year as a whole.

Decreases in job creation are expected to continue, and businesses predicted headcount growth of 0.7% in 2013.

Mr Proudfoot concluded: “Weak private sector job creation will weigh down on prospects for the region’s jobless workers.

“Despite recent decreases in unemployment, the rate remains elevated at 9.9% compared to a national average of 7.9%.

“In addition, we anticipate public sector cutbacks are likely to hit Northern England as more than one in five workers (22.5%) are employed by state funded organisations.”

This was posted in Bdaily's Members' News section by Miranda Dobson .

Enjoy the read? Get Bdaily delivered.

Sign up to receive our popular morning National email for free.

* Occasional offers & updates from selected Bdaily partners

Our Partners