Facebook - Birmingham Business Twitter - Birmingham Business Instagram - Birmingham Business
https://www.propelfinance.co.uk https://www.hgf.com

Business confidence at record high

Business confidence in the West Midlands has hit its highest level ever since a survey of chartered accountants began in 2004.

The ICAEW Business Confidence Monito (BCM) for the West Midlands found optimism had risen to 52.1, a record level for the region and the highest reading of anywhere in the UK. The high level of confidence was likely underpinned by the vaccine rollout and expectations of a strong rebound in economic growth as lockdown restrictions ease.

However, the boost in confidence came after the region’s businesses experienced a difficult 2020. Overall, sales fell faster than in any other part of the country and profits suffered the deepest fall on record, as the West Midlands’ large automotive and consumer durables sectors were exposed to a drop in demand.

Research and development spending was also down, which was of particular concern given its strategic importance to the region’s vehicle manufacturing businesses.

Over the next year, growth in domestic sales and exports are expected to outpace national performance, with the release of pent-up demand set to drive an expansion in the region’s manufacturing sector, companies said. Profits are also expected to increase at record pace, in line with the stronger sales performance, with an uptick in investment likely.

Staff levels are projected to increase after a fall in employment last year. The Government’s furlough scheme cushioned the labour market hit, as the region had one of the highest rates of furloughed workers across the UK during the first wave of Coronavirus.

But despite the optimism, considerable uncertainty from the pandemic remains. Nearly half of businesses in the region cited regulatory requirements as a growing challenge, more than any other part of the UK, as companies grapple with adapting their operations to new customs and regulatory standards.

Meanwhile, a high proportion of West Midlands businesses reported transport problems as a more pressing issue than it had been previously, the highest in the country, likely reflecting Brexit difficulties and the impact of lockdown restrictions.

Dr Sophie Dale-Black, ICAEW regional director for the Midlands, said: “The record business confidence in the West Midlands is positive news for economic recovery over the next year and likely reflects optimism for the future following the success of the UK’s vaccine rollout.

“The past year has been extremely painful for businesses in the region, with falling sales and profits reaching a record low, but expected growth in domestic sales, exports and profits in the months to come means there is light at the end of the tunnel.

“However, even as the economy unlocks companies will be mindful of global health and economic problems which could still see muted recovery for businesses in the region.”

https://ad.doubleclick.net/ddm/clk/496585059;303812161;l

Exports hold up despite disruption

Chamber survey shows businesses report increase in international sales

10th May 2021

DIB strengthens management team

Talented employees rewarded with promotions

4th May 2020

Intervention could save more jobs than furlough scheme

Trade body welcomes Government's decision to guarantee insurance

18th May 2020

Support on offer for careers in transport

Partnership aims to help young people develop skills

30th November 2020

Investment fund makes immediate impact

Over £64m invested in businesses in the Midlands

20th May 2020

Business leaders pledge to work with Mayor

Partnership approach will help region get back on its feet

10th May 2021

New £100m debt fund launched

Support on offer for SMEs that need flexible funding

29th October 2020

Flomatik bolsters leadership team

Network services provider recruits top telecoms talent

8th June 2021

Tech businesses urged to sign up

Accelerator programme will help start-ups reach the next level

4th March 2021

SME manufacturers call for urgent financial support

Survey reveals sales and production volumes set to fall

4th May 2020

New director joins the board

Alternative business lender strengthens its team

1st May 2020

SMEs receive helping hand to bounce back

WMCA and partners host free webinar on advice and grants

28th June 2021

Data shows reliance on Covid support

One in ten Midlands workers were furloughed

8th December 2020

Sluggish global economy has impact

Mid-market businesses concerned about pandemic after-effects

30th June 2021

What if . . . we spent our lives trying to guess what's next?

The best way of making an impact

5th March 2020