SALES for manufacturers have bounced back and county firms have increased the size of their workforces according to the latest Quarterly Economic Survey from Northamptonshire Chamber of Commerce.
The results in the report, which covers the three months from October to December 2016, shows that sales within the manufacturing sector rebounded during the fourth quarter of the year.
In total 74 per cent of manufacturing firms reported that sales had either increased or remained the same compared to the previous quarter.
Research into export sales activity revealed 87 per cent of manufacturing businesses and 70 per cent of service sector firms said export sales were the same as Q3 or had increased.
In total 54 per cent of businesses operating across the services sector reported that UK sales remained in line with the previous quarter. Only 16 per cent of services sector businesses reported a decline in UK sales during the fourth quarter.
Export orders for manufacturing firms reported a net balance figure of plus 33 per cent up from minus 31 per cent in the previous quarter. For the service sector the picture was the opposite with a balance figure for businesses operating across the sector of below zero, indicating an overall contraction in export orders. Meaning that more firms cited a decline in export orders versus those that reported an increase.
Encouragingly both sectors revealed they had increased their headcount during the final quarter of 2016. Manufacturers, in particular, reported their second consecutive quarterly increase in employee headcount with the balance figure of 24 per cent, the highest level recorded in 2016. Looking ahead the service sector is expected to outperform manufacturers in terms of hiring staff during the next quarter.
Northamptonshire Chamber of Commerce chief executive Paul Griffiths said: “It’s reassuring to see now that the immediate dust has settled from the fallout of the EU referendum vote, businesses across the county have adopted a business as usual approach, with manufacturing firms in particular seeing an increase in activity. And in some cases outperforming their services sector counterparts.
“Furthermore, we’re encouraged to see that both sectors – manufacturing and services – have increased the size of their respective workforces. However, we’ll monitor whether this hiring activity is down to seasonal trends when we survey businesses again during the first of 2017.
“With around a fifth of service sector businesses investing in plant/machinery over the quarter coupled with the majority maintaining the same level of investment in their workforce it’s evident that the sector is taking long term approach whist riding out the current waves of uncertainty.”
