More than half of businesses across the north of England are set to boost investment in the next 12 months, a new research suggests.
Businesses were asked for their opinion as part of the newly launched Barclays Business Prosperity Index, and 56% of firms across the North East, North West and Yorkshire & Humber said they would increase spending in the next year. Meanwhile 70% said they were reducing prices in order to keep customers.
The findings are set against a broader, UK-wide picture of mostly positive sentiment across business in the wake of the recent Budget. More than half (61%) of business quizzed by the Prosperity Index said they felt confident in the UK’s economic outlook and 46% had reinstated plans to invest having previously shelved them.
But demand across the third quarter was said to be softer than the same time last year, with firms reporting that customers are waiting longer before making big purchases (25%), seeking cheaper alternatives (25%) and questioning value for money of goods and services (20%). In response a majority of businesses (84%) have introduced new measures such as changes to their product offer and changes to the supply chain process.
Skills availability was shown to be creating headwinds for firms as 66% across the North said labour was posing a challenge. That measures up against 62% nationally saying labour was an ongoing issue and 77% of those suggesting it was negatively impacting their ability to grow. More training and staff development was identified by 42% as a priority for investment.
Barclays researchers said the findings suggest the economy is in a period post peak inflation, with the costs of production and services still high. The bank’s own business accounts saw a 3% fall in business cash inflows in Q3 compared to last year.
Matt Hammerstein, chief executive of Barclays UK Corporate Banking, said: “The economic environment remains challenging for those on tight margins, but there are signs of cautious optimism emerging. Our data shows many businesses with investment plans on hold are now confident to kick-start growth by seeking the funding they need. The availability of our £22bn Barclays Business Prosperity Fund will help our clients to invest for their future and support economic prosperity for all.”
Hannah Bernard, head of Barclays Business Banking, said: “Our new Index is designed to be a bellwether of business sentiment, performance and future growth opportunities. We hope business leaders and policy makers find it a valuable tool to navigate the economic landscape. It’s reassuring that businesses remain committed to investing to grow, despite the extra financial pressures faced by many. Barclays stands ready to help unlock access to finance and support business prosperity in the long and short term.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
