Report shows firms expect to grow and profit in coming year
The three Chambers across the WMCA geography (Greater Birmingham, Black Country, Coventry and Warwickshire) have released a new report which reveals that business confidence is still high, despite difficulties with recruitment and price pressures prevailing
The latest report from the West Midlands Quarterly Economic Snapshot found that in Q1 of 2022, 54 per cent of firms are expecting their profits to increase in the next 12 months and 64 per cent are expecting an increase in turnover in that timeframe
Recruitment difficulties are still rife in the region, with 66 per cent of businesses reporting that they faced difficulties finding staff, which while a 6 per cent decrease on the previous quarter, is second highest figure since records began in 2018.
Sixty per cent of firms expect the price of their goods and services to increase over the next three months, which is a 5 per cent increase on the previous quarter.
Henrietta Brealey, chief executive of the GBCC, said: “Business confidence is still showing growth during the first quarter of 2022, despite a very slight drop in both profitability and turnover balance scores across businesses in the West Midlands Combined Authority area.
“Over half of firms expect an increase in profits over the next 12 months, a significant improvement on the scores seen throughout 2020, when we were in negative territory. It is also positive to see that the predicted turnover rates continue to show growth, with the proportion of firms expecting an increase being above that reported in Q1 of last year.
“As we begin to move into a new phase of 'living with Covid ', we hope that measures to restrict business will not be necessary moving forwards so that confidence can continue to grow, and space made for further innovation to allow firms to flourish. Following on from the Spring Statement, we urge the Government to take action to tackle the rising cost of doing business which represents a significant risk to growth ahead. ”