Local companies are fighting back against challenging conditions, regional business chiefs have said.
A quarterly report from the Greater Birmingham Chambers of Commerce (GBCC) reveals “growing levels of confidence” among firms despite spiralling energy bills and soaring inflation.
It reveals that companies also saw upsurges in turnover and anticipated profits, with 46% of businesses reporting an increase in domestic sales, up from 40% in the fourth quarter of 2022.
Henrietta Brealey, chief executive of the GBCC, said:
“Our latest quarterly business report underlines the growing levels of confidence amongst businesses.
“Both turnover and profitability projections have risen, domestic activity has picked up over the past three months and recruitment activity has also seen a welcome uplift as a greater number of businesses have added to their headcount in comparison to the end of last year.
“It’s also pleasing to see the growth in investment activity, particularly in relation to capital expenditure and training staff – a key driver in unlocking stagnant levels of productivity growth.
“All of which is reassuring given the broader economic challenges our businesses are facing on a daily basis as spiralling energy bills, soaring inflation and global supply chain disruption continue to hamper economic activity both home and abroad.”
Henrietta Brealey
But Ms Brealey warned that economic growth was being hindered by “sluggish” export activity, with many firms squeezed by price pressures.
“Within this context, it is perhaps not surprising to see that export activity amongst local firms remains sluggish and despite a fall in the balance score, price pressures remain exceptionally high.
“In addition, while hiring activity has picked up, recruitment challenges are still ingrained for the majority of businesses attempting to add to their headcount.
“Driving investment into our region will remain a key priority for the year ahead.”
Henrietta Brealey