Survey shows confidence in Greater Manchester despite Brexit uncertainty

Brexit uncertainty is continuing to affect businesses, but long-term confidence is still strong, according to Greater Manchester Chamber’s latest Quarterly Economic Survey (QES).

In Q1 of this year, growth was led by manufacturing output as some businesses stockpiled goods due to fears of a No Deal Brexit, but growth in Q2 has been led by services.

The Greater Manchester Index, a combination of seven key indicators taken from the QES, went up from 19.6 in Q1 to 26.7 in Q2.

The key findings of the QES included:

• International sales have increased in both manufacturing and the services sector

• Consumer spending has gone up slightly and there has been an increase in advance orders

• The construction sector continues to perform well despite some city centre projects coming to an end and will be boosted by upcoming infrastructure projects

• There has been employment and wage growth, but recruitment difficulties remain, particularly in manufacturing and construction

Subrahmaniam Krishnan-Harihara, Head of Research at Greater Manchester Chamber of Commerce, said: “The growth in manufacturing output that we saw in Q1 was probably due to the stockpiling of goods that we saw as a result over fears of a No Deal Brexit. We may see more of this as the government seeks to ensure the country has adequate stocks of essential goods such as medicine.

“Despite continuing fears over Brexit, long-term confidence in Greater Manchester remains strong, employment is rising and wages are growing. Unfortunately, those employers that are recruiting report difficulties in finding qualified staff – more than 90% of employers in the construction sector reported it as an issue. This difficulty in recruiting is worrying as it hampers economic growth.

“We have seen an increase in consumer spending, which is a major contributor to GDP. However, this will be affected in the next few months by the weather as a good summer always boosts the hospitality sector.”

The QES forms part of the UK’s largest and most reliable business confidence survey, which is the first to be published in each quarter and is used by key policy makers to determine economic decision-making.

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Press contact:

Simon Cronin, Membership Communications Manager 0161 393 4335 simon.cronin@gmchamber.co.uk

About Greater Manchester Chamber of Commerce:

• Greater Manchester Chamber is the largest Chamber of Commerce in the UK.

• We provide first-class business support through a range of tailored services and networking opportunities and use our influence with local and central government to lobby on behalf of our members as the voice of the Greater Manchester business community.

• The Chamber is an independent, not-for-profit private company, working to create a better business environment for its members.

• The Chamber covers Manchester, Salford, Wigan, Bolton, Bury, Rochdale, Oldham, Trafford, Tameside and Stockport

• We are an accredited member of the British Chambers of Commerce – one of only 53 chambers across the UK.

• Greater Manchester Chamber was founded in 2004 but traces its roots back to 1794.

www.gmchamber.co.uk


About Greater Manchester Chamber of Commerce

Greater Manchester Chamber of Commerce is the largest Chamber of Commerce in the UK, providing business support to approximately 4,500 members who collectively employ 446,000 people, around one-third of Greater Manchester’s workforce. Recognised as a leader in its field, Greater Manchester Chamber’s reputation in government circles has grown locally and nationally. At the heart of the area of greatest economic intensity outside London and the South East, the Chamber is the primary body for business support, policy, representation and networking. The Chamber is an independent, not-for-profit private company and its aim is to support businesses and help create the best climate for the region to prosper. This is achieved by ensuring that those taking decisions on key issues such as transport, taxation and business regulation hear the voice of our members. The representation of our members’ views is central to the work of the policy team at the Chamber; these views are gathered in a range of ways including our local councils, policy committees, sector councils, the main Chamber council, focus groups, meetings with politicians and consultations. The Chamber also offers a range of networking forums across Greater Manchester, free as part of membership, plus a variety of other events and services designed to benefit specific sectors or individuals and help businesses to grow.


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