Thames Valley: Businesses buck downturn trend
The domestic economy is under immense pressure for the second quarter in a row and there is a danger of a major economic downturn, according to the British Chambers of Commerce’s (BCC) Quarterly Economic Survey. The survey, which saw in excess of 5,000 businesses taking part, supports the view that a UK recession has started and the downturn is getting worse.
Despite the gloomy national figures, however, Thames Valley businesses are continuing to buck the trend and in the struggling service and manufacturing sectors, business has predominantly remained constant. In some areas, notably profit, 38% of businesses in the service sector and half of manufacturing businesses reported an increase. Similar figures were also stated for turnover, with 43% of the service sector and 79% of manufacturing businesses reporting an improvement.
Export sales, custom and bookings figures were positive with 55% of manufacturing businesses experiencing an improvement. Export orders, advance custom and bookings also showed progress, with half of manufacturing businesses reporting an increase.
Claire Prosser, policy executive for the Thames Valley Chamber of Commerce Group said: “Although the BCC’s survey suggests that the UK is currently in recession, the results from the Thames Valley region do not echo this trend.
“We recognise that the domestic economy is under immense pressure and that there has been a collapse in confidence across sectors; however, the results state that on a whole business has remained stable.
“The results are, nevertheless, concerning and we need the government to support businesses during these challenging times. We were pleased that the Bank of England recently took the bold and necessary step to cut interest rates by a half point to 4.5%. This cut will, for now, steady the markets and inject much needed confidence. Over the next four months, however, interest rates must be cut to four per cent as a minimum.
“The UK as a whole is clearly in a challenging economic period, but it is important that we retain a sense of proportion as many parts of the business community continue to perform well. Confidence is critical and it is vital that businesses are shown leadership. The Thames Valley Chamber of Commerce Group will be showing such leadership in the coming months.”
