A new report says businesses in Birmingham are “demonstrating resilience” against the current economic challenges.
The Greater Birmingham Chambers of Commerce’s Quarterly Business report highlights cautious optimism”across the region, despite the impact of the war in Ukraine, unprecedented cost pressures and ongoing recruitment issues.
In total, 54% of firms said they expected their turnover to improve over the next year – an increase of two per cent from Q3 – while fewer are forecasting a fall in profitability.
More than half also expect their profits to rise in the same period.
Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said: “Despite these well documented challenges, cautious optimism abounds as we enter 2023.
“It’s heartening to see that the majority of businesses expect their profits and turnover to go up over the next 12 months.
“Domestic sales remain anchored in positive territory, export activity picked up this quarter for service firms and we saw a greater number of businesses investing in training their staff this quarter which underlines the durability and resilience of the Greater Birmingham business community.”
Sponsored by Birmingham City University, the Quarterly Business Report is underpinned by data on key indicators such as sales, exports, investment intentions and the workforce.
Professor Julian Beer, deputy vice-chancellor at Birmingham City University, said: “The fourth business survey of 2022 provides an opportunity to reflect on the calendar year just gone.
“It is clear that businesses in the Greater Birmingham economy, in common with the national picture, have been tested by rising inflation, and the cost of living crisis against the backdrop of continued post-pandemic recovery. For example, annual trends revealed reduced confidence in turnover and profitability, and decreased sales and forward orders.
“Looking forward, whilst the survey reflected some buoyancy in terms of a quarterly uplift in efforts to recruit and improved cashflow, there is little doubt that 2023 will retain some of the challenging economic headwinds for the regional business base that typified the preceding year.”
The Q4 Quarterly Business Report launch event will take place on 7th February at Birmingham City University and will focus on Growth Trends in Greater Birmingham click to book a free place.