Region’s firms braced for price hike – Chambers survey

While this trend was regarded as “troubling”, there were also signs of “resolve and resilience” over Brexit uncertainty – according to the second West Midlands Quarterly Economic Snapshot of 2019.

The snapshot, which covers the West Midlands Combined Authority area, is the most comprehensive regular report of its kind in the region. The data is collected from quarterly surveys conducted by Greater Birmingham Chambers of Commerce (GBCC), Black Country Chamber of Commerce (BCCC) and Coventry & Warwickshire Chamber of Commerce (C&WCC).

Business resilience figures showed that 34 per cent of service firms expected prices of their goods and services to increase over the next three months compared to 30 per cent of manufacturers.

And 21 per cent of manufacturers of manufacturers expect their cash flow levels to fall against 19 per cent in the service sector. The GBCC area 38 per cent was hardest hit following by C&WCC 18 per cent and BCCC eight per cent.

Corin Crane, the BCCC chief executive, said: “The West Midlands is home to some of the UK’s most prolific exporters. Amid Brexit uncertainty and a general global slowdown, this quarter’s data is testament to their resolve and resilience.

“However, the Government must act decisively and quickly to end Brexit uncertainty which is holding back the region’s businesses.

“Somewhat concerning is the 15 per cent of firms reporting a decrease in export sales – the highest reported since this outlook began just over a year ago.

“From our daily interactions with members, we know that a general slowdown in the automotive and aerospace manufacturing has made for tougher trading conditions for the region’s extensive supply chains. Collaboratively, across the West Midlands, we will continue to work with our partners at Greater Birmingham and Coventry & Warwickshire Chambers to ensure that the new Prime Minister understands the needs of our fantastic business community.”

Export trends revealed that manufacturers across the West Midlands reported an increase in their overseas sales compared to 24 per cent of service firms. But just under a quarter expected international output to go up over the next three months.

Coventry and Warwickshire firms recorded the highest proportion of firms expecting a fall in profits. The highest number of businesses expecting an uplift were based in the Black Country.

However, there was higher confidence across the West Midlands as a whole with 56 per cent expecting turnover to go up. Only 12 per cent expected a fall in turnover.