Downbeat turnover and profit expectations among Humber firms paint a gloomy picture of the region’s economy, new research has found.
Despite an improvement in reported domestic and international trading, only a minority of regional firms told the Hull & Humber Chamber of Commerce’s Quarterly Economic Survey that turnover and profit was expected to rise. The second quarter results showed 40% of respondents – mainly small and medium-sized companies – expected turnover to worsen in the coming months with the balance figure dropping 27 points to -13 this quarter.
Meanwhile profit expectations also sunk, dropping 23 points to -37, the measure’s lowest figure since the final months of 2022. And cashflow readings, while showing some improvement, were still in negative territory.
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The number of firms reporting working at full capacity rose slightly be 4% while fewer thought they would have to increase prices with that reading down nine points on the first quarter results to give a balance figure of 50.
Even with the lacklustre view of the coming months, the employment picture showed signs of improvement with the balance figure rising from zero last quarter to 22. The number of firms recruiting full time positions was down by 27 points to 54 but the number of permanent vacancies was up by 21 points to 57 as temporary vacancies were also up, by 11 points to 29.
Part time positions were also raised, by two points to 29. However, there was an upward swing in firms reporting recruitment difficulties, from 77 to 86%.
Chamber chiefs pointed to more positive findings in home sales and home orders, which showed improvement on the first quarter, with balances up eight points to -28 and four points to -38 respectively. Export sales were also reported to have increased, with 7% more firms reporting rises, while the balance figure for export orders dropped three points to -34.
David Hooper, the Chamber’s external affairs director, said: “While we have seen some improvement in some sectors like domestic sales and orders and exports, businesses in the Humber are still clearly cautious about the future. Turnover and profit expectations for the coming months are well down, which is also reflected in the investment plans for the future with things like new machinery, plant or training.
“While inflation has come down which has eased concerns over raw materials and finance costs, businesses are concerned about business rates and tax – perhaps a reflection on the uncertainty of a potential change of Government in the run-up to the General Election. Employment plans were another bright spot for firms looking ahead, but much will depend on how the new Government’s policies shape up and whether they instil much-needed confidence and stability into directors’ thinking.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber