• Swindon & Wiltshire Economy
• Wednesday July 10 2024
• Author Name: Peter Davison

Exporters’ lack of confidence ‘a real concern,’ says Thames Valley Chamber of Commerce

Confidence among the region’s exporters remains a real concern, according to Thames Valley Chamber of Commerce.

Low expectations around overseas trade was one of the key findings of the Quarterly Economic Survey, which the business organisation runs regionally on behalf of the British Chambers of Commerce.

The Chamber noted that one in three of its members – who were surveyed between May 13 and June 10 ahead of the general election – trade internationally.

But only 24 per cent of those surveyed indicating an increase in overseas orders, a drop from 32 per cent in the previous survey.

Meanwhile, recruitment remains a challenge for Thames Valley businesses.

Sixty two per cent of respondents said they were struggling to hire – down slightly from 65 per cent last quarter.

And there was a drop in the responses saying their workforce increased, with 35 per cent reporting an increase, as opposed to 40 per cent in the previous quarter.

Only 42 per cent indicated that they expect their workforce to increase, compared to 50 per cent of in the previous survey.

Nearly two-thirds of respondents indicated that they experienced difficulties finding suitable staff.

The survey also noted a continued growth in domestic sales, with 49 per cent of Thames Valley firms saying UK sales had increased, up from 50 per cent in the last quarter.

Labour costs replace inflation as biggest woe

Business leaders who responded to the survey said their biggest concern was labour costs – 73 per cent cited it as their number one woe.

Inflation, the biggest concern for respondents last quarter at 63 per cent, stood at 42 per cent this time round.

One of the most promising aspects of the survey was an increase in businesses that expected their financial situation to improve.

Seventy three per cent of respondents said they expected their turnover to increase, while 57 per cent expected profitability to increase.

Paul Britton, CEO of Thames Valley Chamber of Commerce, said: “As a sentiment survey it is important to acknowledge that the majority of responses are against a backdrop of a looming UK General Election and the expectation of a change in Government on July 5.

“Notably one in three Chamber members trade internationally and confidence and expectations in overseas orders remains a real concern.

“Only 24 per cent of those surveyed indicating an increase in overseas orders, a drop from 32 per cent in the previous survey.

“This is why we continue to pressure this and any new Government for an export strategy to get business moving from the UK to new markets.

“Once again results show us that the issue of recruitment is one that continues to be a challenge to businesses across the Thames Valley and this latest report highlights the challenges of the market.

“We can see a slight decrease from the Q1 results in terms of 62 per cent of businesses recording that they experienced difficulties finding suitable staff whilst attempting to recruit, as opposed to 65 per cent in the previous quarter.

“There has been a drop in the responses saying their workforce increased, with 35 per cent reporting an increase, as opposed to 40 per cent from the previous quarter.

“Only 42 per cent indicate that they expect their workforce to increase, compared to 50 per cent of previous respondents.

“Nearly two-thirds of respondents indicated that they experienced difficulties finding suitable staff.”

The local figures have been fed into the national Quarterly Business Survey from the British Chambers of Commerce – Britain’s biggest and longest-running private business survey.

The survey, a leading indicator, often picks up changes in the economy long before other surveys and official statistics and consistently mirrors trends in official data.

It remains closely watched by both UK Government and the Bank of England.