Survey highlights renewed optimism amongst St Helens businesses on growth and job creation

April 2, 2012 - PRLog -- The results of St Helens Chamber’s Quarterly Economic Survey for the first quarter of 2012 were very positive, as local service and manufacturing firms showed renewed confidence and greater optimism on job growth.  

Whilst trading conditions remain tough, St Helens firms are working hard to secure new markets and grow their businesses.    

Instability in Europe and across the world will continue to slow the recovery in the UK and St Helens businesses are not immune from these external pressures. Despite this, increased optimism in the early part of 2012, particularly on jobs, is encouraging.
Service sector workforce levels returned to positive growth in the first quarter of 2012, despite predictions to the contrary, with a third of service sector firms attempting to recruit, an increase of 12 percentage points on the previous quarter. Employment levels into quarter two are expected to increase further.  

Workforce levels for manufacturing firms were less positive, falling into negative balance for the first time since 2009. However the decline was not as bad as predicted, with over a third of manufacturing firms still attempting to take on new staff and more encouragingly, the number of firms expecting to increase staffing levels into the second quarter of 2012 was at its highest level in a year.    

Tracy Mawson, Director of Business Services at St Helens Chamber commented: “The UK economy still faces serious challenges with problems in Europe creating difficulties for exporters, combined with slow domestic demand.

“In its latest economic forecast, the British Chambers of Commerce predicts that growth will be slow, certainly in the first half of 2012, but should improve gradually in the second half of the year. However, renewed confidence by St Helens businesses in the first quarter of 2012 has shown the underlying strengths of our firms, despite tough trading conditions.  

“The Chamber remains confident that when the upturn comes, our businesses have the potential and drive to recover and thrive, but the Government needs to build on this rise in business confidence to ensure the best possible environment for businesses to generate wealth and create jobs for local people.

“The recent Budget was an important moment for the government to focus on business and long-term, sustainable growth. The Chancellor’s commitments to contain the deficit and reduce corporation tax will be welcomed warmly by larger businesses, however many small companies will be disappointed that George Osborne did not do more to support confidence and growth in the real economy.

“While there is a 1% cut in Corporation Tax, companies will still be hit with a 5.6% rise in business rates from April.  In addition, businesses face lower allowances for investment in new plant and machinery in most areas. And while the Chancellor has reduced the cost of borrowing for some businesses, the problem of accessing finance in the first place remains, and will become more acute as the economy begins to grow.

“With the support of our Members, the Chamber will continue to exert influence where it can, to challenge the Government on its policies to support business growth”.

The St Helens quarterly economic survey is part of a national survey conducted by the British Chambers of Commerce, which is the largest and most representative economic survey of its kind in the UK. It is referred to by the Monetary Policy Committee and the Treasury to influence policy. The quarter one survey for 2012 received responses from 247 St Helens Chamber Members, employing over 5600 people.

An executive summary of the survey findings is available at http://www.sthelenschamber.com/latest/surveys or to request a copy please contact mailto:carly.roper@sthelenschamber.com

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