North West Manufacturers Show Resilience

Manufacturers showed resilience during 2012, according to the latest survey of North West businesses.

North West Chambers of Commerce’s Quarterly Economic Survey (QES) for the fourth quarter of last year found the manufacturing sector had seen growth in exports, despite the challenges of uncertainty in the Euro Zone, an easing of growth in emerging markets and the US fiscal cliff.

The survey showed there had been a slight increase in the amount of construction work underway and official data indicates that, for Q3 at least, the region’s order book passed £1bn for the first time in 12 months. There are also a couple of projects set to get underway in the New Year that should help construction firms in the months ahead.
The service sector bounced back from the disappointment of a weak Quarter Three, with increases in both domestic and overseas demand. The domestic market for services benefited from the employment gains made in the North West in 2012. Challenges remain ahead, however, as rising inflation will have an impact on retailing in the early part of 2013.

There is steady employment creation in the service sector and intentions to recruit moving into the New Year are also good, though there are further public sector losses to come. The region’s labour market has lately seen near all time highs of people in employment that has helped consumer confidence and supported the demand reported in the QES, but job losses ahead will weaken this confidence and demand.

Mick Mayor, Chair of Chambers of Commerce North West, said: “It is pleasing to see that the region’s economy has recovered from the setback in the third quarter and is finishing the year on a relatively positive note.

“We are making steady progress with the recovery, but as it is weak growth the experience of each sector and area of the region does vary. Business confidence is particularly reassuring in these results and we must nurture that positivity and look ahead to 2013, when we will see a number of projects get underway that will help the construction sector and enhance the competitive position of the entire region, stimulating business investment and growth.

“The early part of 2013 is likely to see challenges for retailers and consumers as inflation nudges higher, though we believe inflation and the threats to growth from overseas will diminish as the year progresses.” More follows

The QES is compiled by Greater Manchester Chamber of Commerce on behalf of Chambers of Commerce North West. The following North West Chambers contributed to the survey: Altrincham & Sale, Cumbria, East Lancashire, Greater Manchester, Halton, Knowsley, Lancaster, Liverpool, Macclesfield, North & Western Lancashire, Sefton, St Helens, Warrington, West Cheshire & North Wales and Wirral.

The results of Greater Manchester’s Quarterly Economic Survey will be revealed on January 11 between 8am and 10am at HSBC, 4 Hardman Square, Spinningfields, Manchester.