SPENDING cuts and the “underlying weakness” of the UK economy are causing concern for West Yorkshire businesses, it was claimed today.
The latest survey of member firms by the Lockwood-based Mid Yorkshire Chamber of Commerce showed that home sales and orders continued to improve while exports were bouncing back during the second quarter of the year.
Companies across Kirklees, Calderdale and Wakefield reported a recovery in capital investment levels and said they remained positive about prospects for the year ahead. Expectations for turnover and profit were also holding steady.
But they remained cautious about employment intentions and said rising prices were causing concern. Respondents also spotlighted competition and financial matters as the major external issues affecting their businesses.
Steven Leigh, chamber head of policy, said firms were concerned about underlying weaknesses in the economy and the possible effects on the private sector of the deficit reduction programme.
“Although the programme is supported by ourselves and the British Chambers of Commerce, the public sector spending cuts will definitely have an effect on the speed of our economic recovery.”
He said: “In these second quarter results, there are a number of positive signs for the local and UK economy. Most key indicators have continued to maintain or improve on the results reported in the first quarter.
“However, there are clearly some underlying concerns which our members remain wary about, including inflation, exchange rates and the effects of price increases in raw materials and other overheads which are increasing the pressure on manufacturers to raise prices – thereby potentially reducing our competitiveness.”
Mr Leigh said: “Overall, these second quarter figures are encouraging and the chamber will continue to strongly lobby the coalition to continue to introduce business-friendly measures which will encourage investment, create jobs, and promote a stronger economy.”
