Business in the Humber region is showing “signs of optimism” for 2020, despite a difficult final quarter of last year.
Confidence wavered in the weeks and months leading up to December’s General Election, according to a Chamber of Commerce boss, as export figures plummeted at the end of 2019.
However, with many companies reporting improved turnover and profit expectations for the coming 12 months, the outlook seems “much brighter” for the Humber.
Dr Ian Kelly, chief executive at the Hull & Humber Chamber of Commerce , said: “The last quarter of 2019 was subdued as we have seen for most of the year.
“However, with the uncertainty of Brexit and a General Election behind us, it is encouraging to see Humber businesses showing signs of optimism for 2020 with improving turnover and profit expectations.
“The clear Brexit mandate given to the Government at the General Election now allows the Prime Minister Boris Johnson to promote confidence and deliver on his promises of additional investment in the north.
“In the Humber region we look forward to the new opportunities this may bring, especially on improving transport infrastructure, developing our excellent international trade links and most of all, maximising our world leading role in renewable energy.”
According to research by the Chamber, home sales and orders both fell further into negative territory in Quarter Four.
The balance figure for home sales fell 21 points compared to quarter three, to –18, while home orders fell a further 24 points to a balance figure of –27.
Export sales and orders also tumbled further into negative territory, with export sales dropping 27 points to a balance figure of –35, while orders dropped another four points to –27, the lowest level seen since Q3 of 2018.
There was little cause for optimism on the jobs front either, with only seven per cent of firms reporting an intention to recruit staff in the next three months.
This compared to 20 per cent of firms looking for more staff in the previous two quarters.
However, with a Budget set for the first quarter of 2020, there is some cause for optimism.
Dr Kelly said: “Chancellor Sajid Javid has set March 11 for the next Budget in which he is promising to invest billions of pounds across the country with the Treasury prioritising the environment which should sit well with the Humber’s carbon reducing ambitions.
“We hope to see substantial investment on both banks of the Energy Estuary in 2020.”
Looking at the next 12 months, the number of firms expecting to see an increase in their turnover rose by 20 points to +23, while the number of firms which expect to see a rise in their profits in the next 12 months climbed 10 points to a balance figure of 0.
