Suffolk business sentiment “still trapped in a snakes and ladders mode”
“Across the last two years or so, for every quarter of improving trading activity and sentiment, the following one inevitably sees most of those gains being at least partially reversed. Sadly, the latest results from Suffolk Chamber’s Quarterly Economic Survey (QES) is further confirmation of the stubborn endurance of this snakes and ladders pattern.”
Paul Simon, Suffolk Chamber’s head of public affairs, was commenting on research showing figures for the three months to September 2024 were largely dominated by quarter-on-quarter falls, although most indices recorded by the QES remained in positive territory, with the number of positive reports outweighing the negative ones.
Manufacturers reported declines across all activity measurements: domestic sales (a six percentage point fall), domestic orders (minus two percentage points), export sales (minus 62 percentage points), export orders (minus 40 percentage points) and job growth trends (minus 24 percentage points).
Service companies saw falls across three of these measures: domestic sales (an 18 percentage point fall), domestic orders (minus 19 percentage points) and job growth trends (minus 14 percentage points), although there were boosts for both export sales (plus 21 percentage points), export orders (minus 19 percentage points).
Projected cash flow fell for both types of organisations, by 13 percentage points for manufacturing companies and 19 percentage points for services firms.
However, there were sharp contrasts between the two groups in terms of key future business measures. Across all – investment in plant and machinery, investment in training, confidence in improving turnover and profitability and best use of available capacity – manufacturers reported improvements. By contrast, service companies logged declines across all of these.
Ahead of the Autumn Statement and speculation about the approach the Chancellor will take to address the poor public finances, corporate taxation (62%) was the main worry of respondents, ahead of inflation (49%) for the first time in many years. At the same time 32% referenced business rates as a concern, a doubling of the situation recorded in the second quarter of the year.
Matt Moss, Suffolk Chamber’s Economy Group chair, said: “Our ongoing worries about Suffolk’s two-speed economy have just gotten worse in light of this data! The county’s recovery certainly ebbs and flows from one quarter to another in many cases, although there is enough positive news to encourage us all, not least the recent fall in headline inflation to 1.7%”.
“It is vital that Rachel Reeves’ Autumn Statement both supports businesses to grow by locking in a fairer taxation system that rewards risk-taking and growth and gives firms the reassurance of a clear Government strategic direction across, including future trading agreements and infrastructure spend, including the upgrades to Ely and Haughley Junctions and boosted resilience for the A14 in Suffolk, especially in and out of the Port of Felixstowe.”
Economy Group
Quarterly Economic Survey