Pre-election survey reveals sales boost for Portsmouth businesses
Pre-election survey reveals sales boost for Portsmouth businesses An independent business survey on the eve of the general election has shown that companies in Portsmouth are increasing sales while keeping a lid on recruitment. Almost half the respondents have seen a rise in both UK and overseas orders in the past three months but only around a third have hired more staff. The findings are part of the latest quarterly economic survey by Portsmouth & South East Hampshire Chamber of Commerce, part of the new countywide Hampshire Chamber from this month. In a mixed picture for the regional economy, only one in five companies say they have improved their cash flow, while pay costs have become an ever more important factor in determining prices for customers. More than a third of respondents expect to increase prices in the next three months. On the plus side, the numbers investing in training or plant and machinery have doubled for the first time in nearly two years and predictions on turnover and profitability are also more optimistic. Maureen Frost, Chief Executive of Portsmouth & South East Hampshire Chamber, said: “The survey confirms feedback we have been receiving that some factors are picking up again after what has been the worst downturn in 60 years. “Sales are the lifeblood of any business and so the growth figures on the order books indicate a promise of recovery. “On the other hand, most firms are making do with a static or smaller workforce and cash flow remains a critical issue for many.” The survey found that 43% of firms in the region had seen an increase in UK sales compared to 34% in the previous quarter. Those reporting a decrease fell from 30% to 20%. Only 21% of respondents reported improved cash flow compared to 29% previously. One in four said the cash position was worse. Investment trends showed 23% of firms had increased their spending on training, twice as many as in the last survey. There was a similar finding on plant and machinery with 25% increasing their investment as against 11% before. Thirty-five per cent of respondents said they had recruited staff in the past three months, down from 41% in the previous quarter. There was a slight rise, from 20% to 23%, in those expecting to increase their workforce over the coming three months. The numbers claiming pay is an important overhead in determining prices for customers leapt from 7% to 15%. Over the next year, seven out of ten companies expect to increase turnover and six out of ten to increase profitability.