Confidence high after post-Brexit boost for business Bosses record strong end to tumultuous year

BUSINESSES in Greater Birmingham have recorded a “remarkable” end-of-year performance in a post-Brexit bonanza, according to a new report.

But the labour market in the service sector remains challenging, with firms stating they were having difficulty in recruiting.

The latest Quarterly Business Report, produced by Greater Birmingham Chambers of Commerce (GBCC) and supported by Birmingham City University, reflects a growing confidence and determination among the region’s business community, said chief executive Paul Faulkner.

Confidence among manufacturers that turnover would improve in the next year soared to 72 per cent, the highest figure for at least two years.

And the percentage of firms expecting to improve profitability improved from 50 to 62.

The mood was also buoyant in the service sector. Sixty-eight per cent expected turnover to improve, compared with 62 per cent in the previous quarter, and 61 per cent (against 55 per cent) were confident that profitability would increase.

Mr Faulkner said: “This does show the remarkable resilience and deter- mination of companies in the region and demonstrates that Greater Birmingham is open for business since the Brexit vote. Businesses’ ability to bounce back and sustain performance never ceases to amaze us and it’s a huge feather in their cap to outshine the rest of the UK.”

In the manufacturing sector, all factors for sales at home and abroad have shown an upturn.

Thirty-eight per cent (up four per cent from the previous quarter) reported increased sales in the UK while 48 per cent (against 44 per cent) had increased orders.

However, it was the export market which was the star performer for manufacturers, with 48 per cent, the highest figure all year, reporting increased sales.

Orders remained static at a 38 per cent increase, said the chamber.

Just over half of manufacturers (51 per cent), the highest figure for two years, expected to increase their workforce in the next three months but 65 per cent of all firms had experienced difficulties in recruitment over the past quarter.

In the service sector, half (50 per cent) of firms showed an increase in sales against 39 per cent the previous quarter and improved order books were returned by 44 per cent, an increase of nine per cent on the Q3.

Export figures also improved. Thirty-five per cent increased sales in the past three months (up eight per cent on Q3) and 40 per cent (again 26 in Q3) increased orders.

But the labour market in the service sector, which includes distribution, hotels, catering, transport and communication, was proving troublesome with all business (100 per cent) reporting recruiting difficulties.

Mr Faulkner added: “It is encouraging that both manufacturers and service firms saw a welcome upturn in their domestic and international output.

“Businesses are also displaying signs of optimism for 2017, countering concerns about ongoing uncertainty and the fiscal constraints which enveloped the Chancellor’s Autumn Statement. Now is the time to build on this sentiment and ensure the structures are in place for our region to fulfil its potential.”

Businesses are also displaying signs of optimism for 2017 Paul Faulkner, right, Birmingham Chamber of Commerce