New research suggests there is growing optimism among businesses in the Greater Manchester region.
The Greater Manchester Chamber of Commerce's latest Quarterly Economic Survey (QES) paints a more optimistic picture than the first quarter of the year, with rising sales and both business and consumer confidence. The Greater Manchester Index, a composite measure made up of the key QES indicators, came in at 30.6, up 27 points on the previous quarter.
The survey found that businesses still cite inflation, and particularly wage increases, as their main concern, but that domestic and international demand for businesses is increasing, particularly in the northern region of Greater Manchester.
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Subramaniam Krishnan Harihara, deputy director of research at the chamber, said: “The first quarter of the year was not a great quarter – in fact, it was the worst quarter in quite a while. But this quarter consumer confidence is returning and we have seen strong growth since March. Services are growing and manufacturing and construction are at their highest levels in months.”
“Retail sales recovered in May and confidence is rising for the first time in some time. People are spending more willingly, even though prices of retail goods are still rising,” he added.
“Significant increases in the living wage and minimum wage have led to higher wages, increased disposable income and eased cost of living pressures. These price increases can be managed if you are prepared to pay more for goods and services. Confidence is rising and hiring is picking up. Hiring is good with many employers looking to add to their workforce.”
The QES results, released in the Chamber's second quarter economic review, are the latest to suggest signs of recovery in the Northwest economy.
Earlier this month, NatWest's latest regional PMI survey showed businesses are more confident about the future, reporting a fourth consecutive month of increases in new business.