The region’s economy has made further progress, but that there are still some risks at home and abroad that could derail the recovery, according to the latest Business West Quarterly Economic Survey (QES) released today.
This survey, made up of responses from more than 400 businesses across the West, shows that most key indicators were stronger in the second quarter of 2013 compared to quarter one.
Despite these welcome improvements, however, most indicators remain below their 2007 pre-recession levels.
Phil Smith, pictured, managing director of Business West, the business support organisation which runs Bath Chamber of Commerce, said: “Businesses this quarter are more confident about their prospects for the future. This is a reflection, no doubt, of the slight economic upturn and improvement seen in the second quarter results in terms of both UK and export sales and orders.
“This translates into financial optimism, with 68% of businesses expecting their turnover to improve and 59% expecting profitability to improve over the coming year.
“However, it was not all positive, as two thirds of respondents are still working below capacity with taxation and competition being issues of more concern that they were three months ago. Apprehension around inflation is creeping back into the business mindset, mirrored in the 21% of businesses expecting their prices to rise over the next three months.
“Businesses are resilient and are doing their utmost to drive recovery but it must be recognised that recovery will only be turbo-charged if we can create an enterprise-friendly economy here in the UK. That requires swift delivery of the infrastructure boost promised in the Spending Review, more support for exporters seeking to enter new markets, far more action on finance for growing companies, and a relentless government commitment to enabling the private sector to generate wealth and prosperity.
“If we want Britain’s economy to be great, rather than just good, pro-growth policies will need to continue for a while yet or we may be in for a long and slow road to recovery.”
The regional results follow the national picture that emerged from the recently-released survey results from British Chambers of Commerce, made up of responses from more than 7,000 businesses.
