EVIDENCE emerged yesterday of a “two-speed” recovery from recession by Liverpool businesses.
Liverpool Chamber of Commerce’s latest quarterly business survey of 400 member firms found that service sector businesses are more optimistic about improving sales and employment levels than the region’s manufacturers. The results mirror a survey by St Helens Chamber last week.
The Chamber said that its latest findings show that, while business confidence is slowly returning, the recovery remains extremely “fragile” with widespread concerns around cashflow, corporate taxation policy and competition in domestic markets from countries emerging more quickly from recession than the UK.
Service businesses have seen significant rises in overseas sales (up almost 40%) and more modest improvements in domestic sales figures (up 2.9%).
Overseas orders are also encouraging, compared with the results of the Chamber’s previous quarterly survey.
More service businesses anticipate recruiting in the next quarter and plans for investment in capital plant and training are positive compared with recent reporting periods.
But, as with the manufacturing sector, cashflow remains a major constraint of business growth, with 33% of survey respondents stating their cashflow position had worsened. Only 17% reported any improvement since the previous survey.
In manufacturing, even this cautious optimism is hard to find. The dramatic falling off in domestic and overseas sales seen in quarter two is less marked in quarter four and international order books offer some encouragement, but manufacturing businesses are continuing to struggle much more than service sector firms.
Brian McCann, chair of the Chamber’s finance committee, said: “There are really mixed messages coming from the survey.
“It is clear that manufacturers are finding it exceptionally tough, especially in respect of cashflow, but overall there is a continuation in the improvements we first began to witness toward the end of quarter two.”
He added: “The figures seek to exclude seasonal variations but it seems clear that the service sector – especially in Liverpool itself – is exceeding expectations and outperforming many other regions.”
