Chamber QES Shows Slowdown in Recovery and Less Confidence from Businesses

Chamber QES shows slowdown in recovery and less confidence from businesses
Chamber Head of Policy Steven Leigh commented:

“The Mid Yorkshire Quarterly Economic Survey (QES) reports that a number of our economic indicators have fallen during this third Quarter of the year. This was unexpected after we reported last time that the economic recovery had broadly been maintained. As we have often pointed out about the QES survey, optimism in some areas is counterbalanced by weaker figures elsewhere, and that peaks and troughs are to be expected.  But quite a number of events over the summer period have occurred which have created uncertainty, and our survey reflects reduced levels of business confidence.”

He added:

“Home Sales and Orders have declined during the period, and exporters have reported significant reductions in sales and order intake. The difficulties for exporters include declining market demand in Europe and the continuing financial uncertainties within the Eurozone which have reduced demand for our products in Europe - our biggest overseas market. German business confidence recently fell for the fifth successive month, Eurozone business growth continues to slow down, and stagnation has been in evidence elsewhere in Europe, particularly in France.

The continued strengthening of the Pound against the Euro and the US Dollar has rendered our goods and services much less competitive in all overseas markets. Business Confidence has also been shaken due to uncertainty which has arisen due to other factors.

 Parliament was closed for the summer recess and politicians were largely pre-occupied with the Scottish Referendum. The escalating troubles in the Middle East have progressively added to uncertainty as have the mixed messages about interest rates.

Business confidence is likely to remain uncertain until the UK General Election has taken place and a settled economic landscape has been clearly defined. “

Key headlines from the Quarterly Economic Survey Quarter 3 2014:

- UK sales and orders lose pace
- Export sales harder to secure
- Investment indicators stable
- Business confidence shaken
- Exchange rates a big issue for manufacturers

Click Here to Access the Quarterly Economic Survey Quarter 3 2014