Quarterly Economic Survey (QES) and Results

Welcome to the Quarterly Economic Report for Q2 of 2022

Welcome to the second Quarterly Economic Report of 2022.

I am pleased to see the B2B domestic sales growth progressing this quarter. It’s a positive sign for the months ahead as our recovery is very much still underway.

It is concerning that our manufacturing sales appear to have slowed. Yorkshire, a historically proud manufacturing region, has the tools, skills and ambition to be at the forefront of British and global manufacturing.

But it is crucial that we see greater Government support and levelling up action to truly propel our region to the heights that we have the talent to reach.

Our region, as well as the nation as a whole, is still experiencing difficulty recruiting. While it is fantastic news for individuals that they have a choice about where they want to work and the careers they pursue, this is often leaving firms with gaps to fill, potentially having to outsource work, increasing the strain on the already stretched purse strings.

With fuel prices and the overall cost of living on the rise, companies need a full, productive team behind them to weather the storm.

I would like to thank all those who took part in the Quarterly Economic Survey. Your contributions are incredibly valuable andhelp us campaign for accurate, appropriate and relevant supportacross Halifax, Huddersfield and Wakefield.

If you’d like to share further insight or discuss what these results mean for you, please contact getconnected@mycci.co.uk.

Martin Hathaway, Managing Director

Mid Yorkshire Chamber of Commerce

Executive Summary - Q2 2022

DOMESTIC SALES - The number of service sector firms reporting increased domestic sales was up 8% in the last quarter, overall a 12 year peak. However there are some sharp divergences between B2C services where net balance fell a point to +37% from Q1. In comparison B2B service firms saw a net balance rise of 18% to +56%. It is likely we are starting to see fall out from the cost of living crisis as consumers hold back on spending?

Manufacturers, however, reported more troubling results as growth in domestic sales appears to have slowed. We attribute this to a mix of slowing demand as customers pause decision making until market and supply chain volatility smooths out and also to difficulties in companies simply being able to price products with any degree of certainty and accuracy that they will make a profit. The pace of growth in forward orders also slowed in the last quarter.

INTERNATIONAL SALES - International markets continue to prove challenging for our regional exporters with firms reporting a further slowing in the pace of growth. Exporting manufacturers report ongoing challenges moving goods into the EU. Problems moving goods into and out of China is also raised by many following the country’s strict response to Covid.

The Chamber’s trade documents services did record increases in May following a very slow April; the number of documents processed was also higher than at the same point in May 2020 and 2021.

BUSINESS CONFIDENCE - With unprecedented uncertainty from supply chain disruption, tax increases, spiralling inflation and the ability to deliver products and services it is probably no surprise that many firms are predicting this will impact on trade and profitability over the next 12 months.

CASHFLOW - As the economy hardens companiesare looking to manage cash reserves in anticipation. .

Read the latest QES Q2 report online

Get a seat at the table!

What?

The Quarterly Economic Survey is a regular snapshot of key information, such as local business activity, confidence and issues, which policy makers and government ministers use to inform their decisions and thinking. We incorporate statistics, based on data contributed by members, on sales, orders, export, employment and the impact of economic factors such as inflation and exchange rates to provide ministers with an accurate and up to date analysis of business in the Mid Yorkshire region.

Why?

If you want to see change and influence policy on the business issues that are important to your business then you need to ensure that you are feeding the information into the system. Participating in the QES is an effective strategy to have your voice heard by those who can do something about the business issues you care about.

How?

Every quarter, we encourage Chamber members to participate in the online survey. All responses are anonymous so you can speak freely (if you wish to speak openly and directly to policy makers you should consider attending our Area Council Meetings). We analyse this data to create the QES report which is then sent to key government departments and financial institutions such as The Treasury and The Bank of England. The QES Report is also a very useful resource to inform your own business. To have your say please compete the survey here.

Why Mid Yorkshire Chamber?

The Mid Yorkshire Chamber and British Chambers of Commerce not only have the ears of policy makers but actively lobby government and demand a response. We regularly speak out through the media, both locally and nationally, on these issues because we are the voice of the British business community.

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For further information contact membership@mycci.co.uk