Exporters enjoy a ‘sensational summer’

EXPORTERS in Greater Birmingham have enjoyed a “sensational summer”, according to a new economic survey.

The latest Quarterly Economic Report, by Greater Birmingham Chambers of Commerce, reveals that regional businesses, particularly in manufacturing, have shaken off any after-effects of the Brexit vote to launch a concerted campaign to win business abroad.

A total of 49 per cent of manufacturing firms had increased overseas sales – a two-year high since the 50 per cent recorded in the third quarter of 2015.

Service sector firms reported 32 per cent a also sales increase said was since the year.

As in manufacturing, there was also good news with orders also increasing.

Paul Faulkner, chief executive of the Chamber, said: “This is a tremendous performance by our exporters. They have showed remarkable resilience to battle against many obstacles, including fluctuations in exchange rates.

“This amounts to a sensational summer for Greater Birmingham’s exporters.”

Sixty-five per cent of manufacturers expected to increase which the Chamber the highest figures final quarter of last turnover in the next 12 months, while 51 per cent predicted an increase in profits.

In the service sector, confidence was even higher, the report suggests.

Seventy per cent were confident they would improve turnover and 59 per cent thought profitability would increase.

Hiring dropped off in the manufacturing sector with only 25 per cent reporting an increase in their workforce, down from 32 per cent recorded in the second quarter.

This was offset by a greater percentage of service firms adding to their workforce over the past three months with 31 per cent reporting an increase opposed to 29 per cent in Q2.

Seventy-seven per cent of manufacturers said they had faced recruitment difficulties, which was the highest figure since the fourth quarter of 2015.

However, a lower number of service firms reported recruitment difficulties compared to the last quarter, down to 59 per cent from 68 per cent.

Competition was the biggest concern among service firms whereas the primary worry among manufacturers was around exchange rates.