Member Article

Lancashire economy is stronger but faces risks

Lancashire’s economy is picking up according to the county’s latest quarterly economic survey (QES) although progress could be scuppered by domestic and foreign risks.

Compiled by Lancashire’s three Chambers of Commerce with Moore and Smalley Chartered Accountants, the survey showed most balances in the county strengthened in the last three months in comparison with Q1 2013.

Despite this positive news, Lancashire firms were warned that falls in the service investment balances and weak cashflow could mean that recovery is a slow process.

Export balances were strong while manufacturing export sales reached their highest levels in two years.

Predictions say that improvements over the second quarter of 2013 will continue into the next year, with slow but steady grow anticipated for the future.

The survey also said the results demonstrate a resilience across Lancashire businesses, and encouraged the county’s firms to be confident about investments and exports for the next 12 months.

Babs Murphy, chief executive of the North and Western Lancashire Chamber, commented: “Despite gloomy media headlines in recent months, our economic survey once again shows increased business confidence. Lancashire firms are determined to make progress.

“The sheer strength of our export balances shows that companies have untapped potential to expand. It must be recognised that recovery will only be turbo-charged if we can create a truly enterprise-friendly economy here in the UK.

“That, in turn, 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.”

Stephen Gregson, corporate finance director at Moore and Smalley, added: “A large proportion of businesses responding to the latest survey are saying they have a clear intention to recruit new staff and invest in their businesses.

“While there are still only tentative signs that an economic recovery is underway, this continued period of stability is very encouraging. However, the tough market conditions mean there is no room for complacency.”

This was posted in Bdaily's Members' News section by Miranda Dobson .