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06
Jan
Business Breakfast: Gloomy outlook from business group
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Business sentiment across our region has declined sharply, with sales, recruitment, investment and confidence all plummeting, according to research published today by West & North Yorkshire Chamber of Commerce.
The chamber’s quarterly economic survey for the final quarter of 2024 shows that increases in employer National Insurance contributions and in the minimum wage announced in the autumn budget have led to many businesses revising their profitability projections downward, and putting plans for investment or hiring on hold.
The manufacturing sector in particular fared worst, with sales, orders, recruitment and investment now at the lowest level since the height of the pandemic.
Amanda Beresford, chair of West & North Yorkshire Chamber of Commerce, said:
The results of the latest Quarterly Economic Survey are not what we wanted to start the new year with.
Business confidence declined in the final three months of 2024, with employers reporting declining sales, reduced hiring intent, expressing a shrinking appetite for investment and reducing forecasts when it comes to profits.
Indeed, one needs to travel back the hight of the pandemic to see such poor levels of sentiment among businesses.
Although firms have become accustomed to uncertainty over the past eight years, they still do not have the stable platform upon which sustained economic growth can be achieved.
Let us hope optimism returns in the months ahead and that we finally as a country get back to growth.
After a period of decent performance during 2024, sales volumes for manufacturers have fallen to a four-year low. Service sector firms, however, improved their sales performance to the highest level in two years, although order books remain flat.
Both sectors saw a marked decline in overseas sales.
The one ray of light is that employers in the manufacturing sector are seeing a rising appetite for training staff.
The chamber cited taxation as by far the number-one external pressure facing firms in the region, especially since October's rise in employee National Insurance contributions.
Labour costs also feature highly among cost pressures, exacerbated by October's increase in the minimum wage.
The number of manufacturers anticipating price increases rose by 27%, while service sector firms saw a 17% increase.
Harrogate BID's AGM
Harrogate Business Improvement District (BID) has confirmed the date, time and location of its annual general meeting (AGM) this month.
The meeting will be held on Thursday, January 16 from 5.30pm at the DoubleTree by Hilton Harrogate Majestic Hotel & Spa.
During the meeting, the BID team will host a presentation to share details on the project, campaigns and events delivered in 2024, as well as its plans for 2025.
There will also be the opportunity to ask questions to the BID team and board, who oversee the organisation’s delivery.
To reserve a place at the meeting, click here.
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