Key Economic Indicators Are Positive Moving Into 2nd Half Of The Year

The NI Chamber of Commerce, in collaboration with BDO NI, have just published their economic report on the 2nd half of this year, and all key economic indicators are looking reasonably rosy, which is great news to hear.

Overall business performance has been classed as steady as she goes, with some shoots of growth around and plenty positivity up and down the country. Over 30% of businesses in the report are classed as trading well, with another 50% trading steadily, and just 17% saying they are either just about staying in the black or they are struggling. This is an improvement on the previous years report.

Generally order books were looking busy, the confidence in turnover growth, particularly in the manufacturing sector, was high, inflation wasn’t as much of a concern and investment intentions were positive. However cashflow was an issue among many businesses.

Good To Observe Strong Trading Performances

Speaking about the results in this latest report, Suzanne Wylie, chief executive of the NI Chamber, is quoted in an article on the Business Eye website as saying:

“Whilst it is good to observe strong trading performances from a majority of NI Chamber members, these survey results indicate that cashflow is a pertinent concern, particularly for Northern Ireland’s manufacturing sector, whose cashflow position is lowest across the UK regions. 

“We will be maintaining a watching brief on this important indicator. A weakening cash-flow position not only highlights the need for good payment practices, but also underlines why policymakers must take note of the impact of the challenges businesses face when operating in a prolonged high-cost trading environment.

Businesses Still Having Difficulties In Recruiting

“Access to people and skills has been a persistent challenge for NI Chamber members, which is evident again this quarter. 3 in 4 members are reporting difficulties recruiting, while 2 in 5 are directly impacted by a very significant 48% increase to the minimum salary for a Skilled Worker visa which employers now need to pay. A notable share of firms are also reporting concerns about the business implications of immigration restrictions on cross-border movements, all of which is adding to cost pressures.

“Competition is now seen as the greatest external issue facing businesses. It is vital that Government here and, in the UK, take these challenges for business and the implications for economic growth into account to enable businesses to meet their aspirations and for the NI economy to thrive.”