Northamptonshire firms buck national economic trends
Today sees the release of the British Chambers of Commerce’s (BCC) Quarterly Economic Survey, covering the last quarter of 2011. These national results point to a further deterioration in the economic situation, with signs of stagnation in the first quarter of 2012. They also go as far as to suggest that the improvements in 2010 and early 2011 have largely been cancelled out in the last quarter of 2011.
However, from a local point of view, Northamptonshire firms are not reporting such a negative experience of the economy.
The county’s manufacturers reported that advanced orders were up by 10% and sales were up by 22% compared to quarter 3. In addition to this, 61% of manufacturers were optimistic that their turnover would improve in the first quarter of 2012 and more businesses reported that they were now working up to full capacity again, compared to last quarter. However, 10% fewer manufacturing businesses have seen export sales increase or remain the same compared to Quarter 3.
In the services sector, 87% businesses expect their turnover will improve or remain the same in 2012. There is also optimism with respect to profitability, with 78% expecting it will improve or stay the same in the first quarter of 2012. In contrast to the manufacturing sector, most services businesses are operating below full capacity (84%). However this has not changed dramatically since last quarter (80%).
Overall, the two sectors were in agreement when it comes to concerns for 2012, with both citing price pressures relating to raw materials, increasing energy costs, inflation and promptness of payment from customers as their main worries.
Commenting on the results, Paul Griffiths, Chief Executive of Northamptonshire Chamber, said: “There seems to be little difference between the Quarter 3 and Quarter 4 results locally, which is a big achievement in itself when compared to the national results released today by BCC.
“Once again it looks as though both sectors are performing equally, although the services firms are a little slower in getting up to full capacity again. Either way, the majority of the firms surveyed are reporting that they are optimistic for 2012, which is great news.”
The Northamptonshire businesses that responded to the latest survey employ over 4000 employees between them.
Posted by: Northamptonshire Chamber
