Gloomy outlook for North West economy

The outlook is gloomy for North West businesses, according to the latest regional economic survey.

Chambers of Commerce North West’s Quarterly Economic Survey reveals that UK sales and orders for both manufacturers and service providers have continued to weaken this quarter. Exports and advance sales overseas have also fallen for both sectors.

The survey also showed that confidence had deteriorated further. The net balances for confidence in profitability for both manufacturing and services are now at –19% and –2% respectively. Confidence in turnover has also declined.

Holly Keogh, Assistant Policy Manger at Greater Manchester Chamber said: “The North West report reflects the tough trading conditions at present, with the overall outlook gloomy. The main issue is a sustained decline in confidence.

“However there are positives such as continued investment in training from both manufactures and services, and so far the difficult trading conditions do not seem to have affected employment.”

The survey also reveals pressure from raw material prices and other overheads were high for both manufacturers and services. While manufacturers reported decreasing price pressures, services were still experiencing increased pressure.

Inflation was causing the greatest concern for North West businesses, with 67% of manufacturers and 61% of service providers citing it as a major issue.