Chamber survey shows NE businesses increasing concern on rising costs
Date published:
The largest, independent economic survey of North East businesses has shown growth but a substantial increase in concerns about rising costs.
North East England Chamber of Commerce, which produces the quarterly survey, reported workforce, UK and export sales and investment indicators were in positive territory. However, nine out of ten respondents were worried about both inflation and energy prices.
Lesley Moody, Chamber President said: “The results of this survey paint a clear picture of businesses doing their best to recover and grow in the face of continued difficult circumstances.
“A strong proportion of respondents had attempted to recruit into full-time, permanent positions in the last three months. But there is also a huge and growing concern about costs, with the top five perceived issues for businesses listed as inflation, energy prices, staff costs, interest rates and taxation
“The Chancellor’s Spring Statement failed to bring anything like the action required to head off these concerns, so our future remains uncertain. We can’t afford for this recovery and growth to taper off due to lack of support. However, with the resilience and ingenuity of our region’s businesses, I have no doubt their ability will enable them to adapt and grow, whatever the prevailing economic weather.”
“As we marked two years since the first national lockdown, we in the business community have had no time to pause for reflection. The pandemic challenges have given way to a cost of living and operating business crisis. We have also seen the impact of the start of the geopolitical and humanitarian crisis from Russia’s invasion of Ukraine.”
The positive indicators in the survey reported that businesses are recruiting with 64.5% of respondents attempting to recruit full-time staff in Q1, an increase on levels recorded last quarter (59.7%), showing a continued upward trend across the last 12 months from the levels recorded in Q1 2021 (46.7%).
Chris Graham, Regional Office Head at Newcastle-based law firm Weightmans said: “I’m pleased our firm’s position certainly reinforces the survey results on recruitment. We’ve increased our head count to over 60, with 20 new recruits in the last two years, despite the pandemic’s challenges. These new jobs have been created at a range of levels including 5 new partners, with another four in the pipeline, 11 solicitors and three solicitor apprentices.
“The new roles are a result of expansion along with the launch of a claims and clinical negligence practice and a family law and private client service. We’re delighted to be bringing investment into the region in terms of these new roles and the creation of Weightmans’ new base, following the merger with Watson Burton.
The Chamber’s Economic Survey is in association with Durham University Business School.
Download a copy of our Economic Survey Q1 2022 here.