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Business cautious in Doncaster

A report released today evidences further underlying economic improvements for the borough, but emphasises caution over short term GDP growth.

Doncaster Chamber of Commerce’s Quarterly Economic Survey indicates an 8% increase in sales over the three months to December 2009 – meaning that the balance of businesses reporting increasing sales now sits at +26%. Cash flow too, has seen a 16% increase – the balance of businesses reporting improving cash flow has now moved to +8%. Export sales are extremely encouraging +26% of exporters are reporting an upturn in actual sales and +23% are reporting an increase in advance orders.

The balance of businesses expecting to increase staff numbers over the next
three months is now +15%; this is consistent with the previous quarter and is
perhaps indicative of growing stability in the labour market.

However, business confidence – the profitability expectation – has dropped from +54% to +45%, possibly suggesting nervousness in the business community over the impact of the post-election budget.

Commenting, Daniel Fell, Head of Policy at Doncaster Chamber of Commerce said:

” These sales figures give reason to be satisfied about increasing economic stability in Doncaster. Pre-recession, Doncaster had the seventh fastest growing economy in the UK - we need to return to that level of growth quickly, if economic regeneration is to continue apace. Business confidence has however stalled, probably due to nervousness surrounding Government spending cuts and a resulting secondary recession in 2010.

Economies such as Doncaster, which are somewhat reliant on the public sector spending, will continue to feel the pinch over the coming years as salary freezes and spending cuts kick in. It is therefore imperative that partners continue to deliver excellent work around inward investment in Doncaster, in an effort to move the economy away from reliance on the public sector and towards a private sector balance.

Increasing export figures are very encouraging and it is evident that more and more businesses are waking up to overseas opportunities and recognising that they may need to look further a-field to be globally competitive in years to come. However, far too few Doncaster businesses are exporting – Chamber figures suggest around only 10% of all Doncaster firms trade overseas– more needs to be done to encourage international trade in Doncaster.

We are now in the run up to the General Election - it is important that all parties consider the needs of the business community and that any budgetary decisions do not disproportionately impact on businesses – the future government must think business first - as local partners in Doncaster are currently doing.”