Latest News | 8 July 2021

Derbyshire economy continues to bounce back says chamber

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A new survey conducted by East Midlands Chamber has found that confidence among Derbyshire businesses is the highest it has been for almost three years.

According to the results of the chamber’s latest Quarterly Economic Survey, recruitment, sales and investment all increased significantly over the last three months as the Government roadmap out of lockdown progressed.

And its State of the Economy Index – a measure of the region’s economic health compiled by aggregating various indicators – reached its highest level since Q3 2018 as the steady recovery was replaced with big growth expectations.

Chris Hobson

More than 400 businesses across Derbyshire, Leicestershire and Nottinghamshire took part in the survey.

Key findings for Derbyshire included a net increase in UK sales of 35%, with advanced orders up 31%.

A net 17% of organisations increased their labour force in the previous three months, while a net 44% expected to grow it over the next three months.

Investment intentions are also rising, with a net 32% expecting to spend on machinery and equipment while a net 28% predict they will invest in training.

Finally, a net 63% of businesses said they were confident their turnover will improve over the coming quarter, while a net 33% believe profitability will increase too.

Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “Building on the recovery seen in Q1 2021, growth across Derbyshire – both in terms of activity and sentiment – continued to strengthen as the Government roadmap for re-opening progressed across the past three months.

“Domestic markets performed particularly strongly for both sales and orders, while overseas markets were stronger for advanced orders than in-quarter sales.

“Employment has also increased and looks set to continue growing with positive recruitment intentions.

“Encouragingly, following a year of cashflow deterioration, as more businesses have been allowed to open and confidence has grown, access to cash has also improved for the majority of firms.

“While there remain certain sectors for whom the roadmap has been slower to reach them and are still in need of support, the overall picture is one of strong growth and strong prospects for future demand and activity.”

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