‘Resilient’ West Midland firms stay confident as they maintain sales
BUSINESSES in Greater Birmingham have demonstrated “resilience and tenacity” as they battle a Government doing little to bolster confidence, according to a new survey.
The second Quarterly Economic Business Report of 2017, produced by Greater Birmingham Chambers of Commerce with Birmingham City University, showed a business community maintaining sales both at home and abroad with confidence remaining resilient.
The report reveals that confidence remains high among local businesses though slightly lower than the last report.
Chamber chief executive Paul Faulkner said: “Our Quarterly Business Report results show once again the amazing resilience and tenacity of our region’s businesses – continuing to maintain and grow trade and profitability despite uncertainty. Anecdotal evidence from our members suggests that the Government needs to do more to bolster business confidence. We will be urging politicians to put rivalries to one side to ensure they promote the economic well-being of the nation and formulate a policy programme which fosters entrepreneurship and allows our businesses to reach their full potential.”
Forty-nine per cent of businesses in the region experienced an increase in domestic sales over the past three months and 35 per cent had an increase in export sales.
The proportion of firms expecting to increase prices fell to one third (33 per cent) from 42 per cent last quarter while 63 per cent said their prices would stay the same.
This was the first quarter that there has been a fall in the proportion of firms expecting to raise their prices since Q3 2016.
Professor Julian Beer, deputy vice-chancellor of Birmingham City University, added: “Business sentiment remains positive a year on from the Brexit referendum result despite the uncertainty created by a minority Parliamentary administration. “Although business sentiment is robust, it has noticeably eased from previous highs according to the latest QES release. While business respondents continue to state that output and new orders are strong, there is some evidence that performance is easing. “The impact of sterling, contributing to higher import costs, coupled with tight labour market conditions, is contributing to inflationary pressures. “Overall, however, economic conditions and indeed prospects remain favourable, notwithstanding the confusing political environment.”