Region bounces back in wake of EU referendum

COMPANIES in the West Midlands have been praised for showing resilience in the wake of the EU referendum vote after a business survey revealed an “optimistic” outlook across the region.

The Greater Birmingham Chambers of Commerce Business Report, for the third quarter of 2016, showed that businesses are moving on from initial concerns about Brexit.

Overall business confidence remained buoyant, with 61 per cent of companies expecting to improve their turnover in the next year.

Paul Faulkner, chief executive of Greater Birmingham Chambers of Commerce, said: “It’s encouraging that the region is feeling optimistic post-Brexit.

“While there was a drop in the proportion of firms reporting an increase in domestic sales – perhaps reflecting the immediate uncertainty following the vote – advance orders are back on trend and confidence remains strong.

“This is a testament to the resilience of Greater Birmingham businesses.

“However, given some lingering concerns about Brexit, it is not surprising to see that the proportion of firms looking to increase their investment and training budgets dipped this quarter.

“We hope to see greater clarity on the Government’s industrial strategy, investment in infrastructure and investment in the region at the Autumn Statement to further boost confidence amongst British business.

“We know that trading internationally has rarely been more important for the business community.

“That is why we have just launched the GBCC International Hub, offering comprehensive international trade support.”

However, the report, published in partnership with the Birmingham City University, indicated that, while more than half of firms in Birmingham (55 per cent) were attempting to recruit new staff, 60 per cent were struggling to finding the right people.

Other figures in the report showed domestic sales for both services and manufacturing firms fell in the immediate aftermath of the referendum.

But manufacturers in particular have bounced back, with 44 per cent recording increased orders, up from 33 per cent in the last quarter and the export market continued the same trend.

Thirty-one per cent of manufacturers said overseas sales had increased, compared with 29 per cent in Q2 and orders also improved to 38 per cent compared with 32 per cent.

The value of pound sterling appears to have benefited exporting manufacturers, although a significant number of companies across all sectors cited exchange rates as a concern.