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Chamber Survey shows services outperforming manufacturing
The latest Liverpool Chamber of Commerce Quarterly Economic Survey covering Q4 2011, shows that Merseyside businesses are now feeling the effects of public sector spending cuts together with the uncertainty surrounding the future of the Euro zone.
Where as sales and orders improved significantly through 2010 there has been a reduction in 2011 - particularly for manufacturing businesses where the final quarter has been particularly difficult with the majority of manufacturers reporting falling orders for the first time since the end of 2009. Service businesses are doing better in terms of both sales and orders.
Brian McCann of MC Vanguard Corporate Finance who sponsor the survey said: "For many businesses, this is the time of year when they are setting plans for the future. Planning will be particularly difficult for our manufacturing companies at the present time because there are few clear trends. Sales and orders have bumped along throughout 2011 and then turned down later in the year".
The service sector turned in a remarkably positive performance and ended the year with a sharp improvement in sales, orders and even cashflow with the majority of service businesses also expecting a strong start to 2011. Given that many service businesses serve a relatively local market this provides further evidence that the Merseyside continues to perform more strongly than many parts of the UK.
Mr McCann added: "The service sector results do suggest that business owners are being more resourceful then ever in finding ways to trade through challenging times and the improvement in cashflow is particularly encouraging. However, the early weeks of 2012 will be very important and we hope that the optimism shown and continuing investment by these businesses will be rewarded".
