Partnership publishes new economic report

29/08/12

Business confidence in the Leeds City Region is finely balanced between signs of growth and concern over the impact of the Eurozone crisis, according to the latest Quarterly Economic Survey by the Leeds City Region Partnership and Chambers of Commerce.

Continuing Eurozone problems dented business confidence in the second quarter of 2012, with domestic and overseas sales growth slowing, and orders for quarter three also growing at a slower pace.

Hardest hit was the manufacturing sector in which confidence was lower than the service sector.

Despite Eurozone concerns, many of the indicators in quarter two are above the levels seen at the height of the recession in 2008/2009 with 40% of businesses now bigger than they were then.

In terms of current performance:

• Domestic and overseas sales are firmly in positive territory
• Business confidence levels remains high, with 55% of businesses expecting turnover to grow, and almost 50% anticipating higher profitability
• Investment intentions also remain strong, though there was a marginal drop to +18%

The new City Deal between the Leeds City Region and the government, alongside other campaigns by the LEP (Local Economic Partnership), will help to address the challenges faced by business and drive local growth and jobs for the future.