Economic survey paints gloomy picture for Doncaster businesses
Business confidence in Doncaster is currently in free fall with only 53% of businesses now expecting profitability to increase in the next three months; this compares with 66% in the last quarter of 2007 and 68% in the third quarter of 2007. Similarly, only 42% of businesses reported an increase in sales this last three months compared with 50% of businesses in the final quarter of 2007.
Performance in Doncaster reflects a weakening of the UK economy and the Chamber is now calling for another 25 basis points interest rate cut in May, following on from the recent decision by the Bank of England to reduce the interest rate to 5%.
Daniel Fell, Head of Policy at Doncaster Chamber said:
“Interest rates are now putting extreme pressure on Doncaster businesses with 39% of Doncaster businesses citing interest rates as the biggest external pressure on their business success. The ominous warnings in the Bank of England’s recent Credit Conditions Survey highlight the growing risks that the credit crunch may be worsening as evidenced by the worsening cashflow position for a lot of Doncaster businesses.
“The Chamber is mindful of the fact that Doncaster is continuing to experience rapid growth and redevelopment, and we are also concerned that we must not talk ourselves into a recession; however, Doncaster businesses are now tightening their belts and starting to fear the worst in upcoming months, by cutting interest rates in May the Bank of England really could help restore business confidence here in Doncaster.”