Business leaders in the North East have reiterated demands for regional investment after the area’s largest independent business survey pointed to a decline in both performance and confidence in the final three months of 2019.
The North East England Chamber of Commerce’s Quarterly Economic Survey, which represents the views of its 3,000 members on trading conditions and forecasts for the future, showed major declines in exporting orders and sales, as well as companies holding back on investment in training and equipment.
The survey showed that export sales have fallen by 22 points over the last year to a low not seen since the financial crash, with a particular drop for manufacturing companies in the region.
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海角视频 sales and orders have also fallen dramatically, while there was a major slump even in the last three months of the year in the number of firms looking to invest in training and new plant.
The survey covers the period that ended with the decisive election win for the Conservatives, with some hoping the ending of uncertainty around Brexit will lead to an improvement in business performance.
An overview on the survey from Durham University Business School said the next report − due in April − was “likely to make interesting reading” to see whether the election result brings any improvement in business conditions.
But Chamber president Lesley Moody warned the Government that positive Brexit negotiations, and concrete action on investment for the region, was what was really needed.
She said: “The results for the end of last year paint a worrying picture for the direction of the regional economy; continuing a trend we saw in the third quarter.
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“In particular, investment has slowed down dramatically, while export sales continue to disappoint.
“This survey was conducted during the recent election campaign and it is clear to see that political and economic uncertainty is causing real difficulties for business.
“Following the election, we hope that stability will ensue and that confidence will return. However, Government should see these results as a stark indicator of the need to secure a positive Brexit outcome that supports our international traders and to turn warm words on regional investment into swift actions.”
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The Chamber highlighted a worrying deterioration in cashflow among companies responding to the survey, which can often be an indicator of a downturn.
Concerns surrounding Brexit continued to be the most widely mentioned barrier to business success.
Survey respondents highlighted uncertainties resulting in reduced investment and customer cautiousness. Difficulties were also attributed to economic conditions and a slowdown in the economy.