Business confidence in the North has edged back into positive territory despite worries over exports and late payments, a new survey has found.
The ICAEW Business Confidence Monitor, which surveys accountants around the region, found that domestic sales and profits dropped sharply year-on-year.
Exports for companies grew slightly, but this was thought to be due to a surge in orders from European firms worried about Brexit-related trade disruption. Just over half of companies surveyed said customer demand was becoming a growing problem, while one in three businesses cited growing concerns over their ability to expand into new markets as the Brexit transition period came to an end.
Businesses also cited problems with late payments, reflecting the financial pressures many companies are under. Nearly a third of firms surveyed reported late payment as a growing source of difficulty, more than double the rate reported a year ago
Investment remained low, and budgets for staff development were lower in the North than elsewhere in the country.
Business confidence in the North returned to positive territory as the vaccine roll out started, but it is among the more subdued parts of the UK.
The companies surveyed anticipate growth in both domestic sales and exports and are hoping for profits to rise by 6.3 per cent. If achieved, that would be the fastest increase in profits since the beginning of 2015.
Business confidence in the North returned to positive territory as the vaccine roll out started, but it is among the more subdued parts of the UK.
Dr James Callaghan, ICAEW northern regional director, said: “Companies in northern England told us they have had a very challenging year, with sharp declines in domestic sales and profits. However, the promising news of a vaccine has seen business confidence move back into positive territory.
“As we look towards spring and summer, we want to see the Chancellor use the upcoming Budget to provide a bridge to sustainable and resilient economic recovery, getting people back to work, helping exporters, and investing in digital technology to make our businesses competitive in the 21st century economy.”
