Leicestershire business leaders say local economy is resilient enough to beat economic blues
Business leaders claim that Leicestershire is in a strong position – despite the worsening economy.
Figures released yesterday showed the size of the UK economy fell by 0.7 per cent in the three months to June — more than three times as much as analysts had expected.
The official figures marked the third quarter of contraction and the longest double-dip recession in half a century.
Business leaders blamed the unseasonably wet weather and the disruption to trade caused by the Diamond Jubilee celebrations.
Cheap Van Insurance For 17,18 & 19 Year Old Drivers - Call Insure365 01782 898188, Free Legal Protection Cover Included valued at £25.00!
Terms: 1 Voucher Per Customer
Contact: 01782 898188
Valid until: Monday, June 24 2013
Martin Traynor, chief executive of Leicestershire Chamber of Commerce, said: "The figure is very disappointing. Retail sales have been disproportionately hit by continuing bad weather.
"However, manufacturing, especially in Leicester and Leicestershire, is performing well and companies that are exporting are still experiencing excellent trade."
Mr Traynor said a survey of 200 chamber members in June found 86 per cent of firms thought turnover would increase or be the same over the next three months.
Mandip Rai, head of Leicester and Leicestershire Enterprise Partnership, the public-private partnership charged with growing the local economy, said: "Leicester and Leicestershire are more resilient than other areas and we have been since the first dip in 2008. The unemployment figures demonstrate that."
It was revealed last week the number of vacancies in the county has grown faster than the amount of jobseekers for the first time in four years.
Leicestershire Chamber of Commerce said vacancies in the county now stand at about 24,000, compared to the 22,631 of people out of work and claiming Jobseekers' Allowance.
Mr Rai said he expected the local economy to be boosted by the Olympics and said a number of major companies were looking at relocating to the county over the coming months, which would create jobs and boost economic output.
Chris Batty, managing director of metal casting firm Lestercast, of Ireton Road, Leicester, said the company was expected to grow by 28 per cent in the year to November 30.
Mr Batty said although the firm exports half its products, many of the increased sales were coming from the UK. The company, which employs 40 people, supplies engineering firms and car-makers, including Bentley.
"I can think of hardly any customers that aren't busy and we have around 150 of them," he said.
"We haven't seen anything to make us think things are bad out there. The worry is that the newspapers and TV people like to talk things down."
However, many retailers have been hit hard as consumers have tightened their belts. Casualties have included Braunstone-based camera chain Cecil Jacobs and Clinton Cards, which both closed stores in the city and county after going into administration.
Irish Clothing, one of the oldest traders in the city centre, is closing one of its two stores because of stagnating sales.
Bosses are shutting the Highcross shop and merging the business with the firm's store on the corner of High Street and Silver Street.
Manager Tom Brown blamed a slowdown in spending by shoppers and growth of internet shopping.
Comments
by Bob491
Friday, July 27 2012, 11:17AM
“The best way to get UK growth is to put more money in the pockets of ordinary people by cutting VAT and increasing the threshold at which people begin to pay taxes. Less wealthy people tend to spend most money in UK. If more people could buy their own homes, there would be growth in construction and on numerous household items.
Unfortunately this incompetent Con government has done the opposite - it has put up taxes for ordinary people and only reduced taxes for the already over wealthy who spend a lot of their extra money abroad. That is one reason why we are nose diving into recession again.
We desperately need a Chancellor who knows about economics, not one who just knows someone who knows about economics. Osborne spent most of his childhood at expensive private schools, and with all the benefits that money could give him still only managed a second class honours degree in History. He has little experience of childhood family life, no experience of ordinary life as lived by most people in this country, no experience of working either in the public or private sectors and no university degree in economics.
No wonder the Cons are floundering about with no idea what to do to improve the ever worsening situation!”
by City_C10
Friday, July 27 2012, 10:37AM
“The whole world needs growth ASAP - If certain sectors are doing well that is great news. I hope they can build upon them and try and max sales/services for the benefit of the whole UK and more!”
by jibbo
Thursday, July 26 2012, 3:49PM
“Backhoe is made by the larval form of the butterfly ( not naming names ). In a month or two production could go back up, it can be cyclical.”
by fondoogle
Thursday, July 26 2012, 1:44PM
“watsorj can you name the company??”
by jibbo
Thursday, July 26 2012, 10:56AM
“I work in a local manufacturing company employing about 70 people. We are certainly very busy, business increases significantly every month. I would be interested to find out if the ouput figures for small and medium companies - such as many found locally - are inculded in the official figures.”
by Bob491
Thursday, July 26 2012, 10:42AM
“Quote: "However, many retailers have been hit hard as consumers have tightened their belts."
The real problem is that this Con government has tightened the rope around the necks of ordinary people just as it has choked the life out of the economy.
It is also very noticeable that companies that deal with luxury items for the wealthy are living in good times though. Sales of expensive cars are booming.
The rich are getting richer while the poor are getting poorer. That how the Cons prefer it!”
by watsorj
Thursday, July 26 2012, 9:01AM
“Iv'e heard that one of the counties largest manufacturer of construction equipment is about to cut it's production of Backhoe loaders by upto 50%”
by JonDanzig
Thursday, July 26 2012, 8:12AM
“I asked government member, Jo Johnson, MP, brother of London Mayor Boris Johnson, if Britain could be a number one economy again. He said no. In fact, as a country he said we are just going to get poorer and poorer relative to other countries. To see the YouTube video of my question and his reply go to:
http://tinyurl.com/c9anrjt (55 seconds)”