Consistency in the domestic and export markets ensured a more stable end to 2023 for Greater Birmingham's businesses, according to a new economic report.
Greater Birmingham Chambers of Commerce's latest Quarterly Business Report reveals domestic sales, export demand and turnover all remained relatively stable during the fourth quarter of last year.
The report reveals that 40 per cent of firms saw an increase in domestic sales - up by one per cent on the previous quarter.
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And the number of firms across all sectors reporting an increase in export sales was up five per cent on quarter three to 28 per cent.
Both manufacturers and service firms experienced a welcome uptick in export sales, increasing by four per cent and five per cent respectively.
While there was a slight drop in the number of firms expecting an increase in turnover over the next three months (down one per cent on quarter three to 62 per cent), just 11 per cent anticipate a decrease.
Recruitment once again remains a major challenge for Greater Birmingham businesses. Of the 56 per cent of firms who tried to recruit during quarter four, nearly three-quarters (72 per cent) reported difficulties.
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Chamber chief executive Henrietta Brealey said: "Our index for the final quarter of 2023 indicates that, while not uneventful in the external environment, there were signs of welcome stability on key measures of local business sentiment.
"Among both sectors combined, the domestic sales balance score remained in positive territory at 62. Export growth remained positive, albeit notably less strongly so at 54.
"Business confidence in improving turnover over the next 12 months remains high at a balance score of 76, with 62 per cent of businesses predicting an increase in turnover.
"Confidence in improving profitability was also positive at a score of 65 although notably weaker than the indicator for turnover.
"A key contributor to this is no doubt the rising cost of doing business. 45 per cent of respondents expect prices of goods and services to increase further over the next three months which, while down from its peak 12 months ago, is still significantly higher than the long-term trend."