Sunday, September 20, 2020

Inflation a key concern for Lincolnshire businesses

Lincolnshire businesses have welcomed latest results from the county’s Quarterly Economic Survey, which shows a steady increase in sales, though inflation is still a key concern for businesses.

Sales and orders for the UK remain strong with a steady increase on last quarter’s results.

Even more so when compared to quarter three in 2016 when results were significantly low. Since then performance has progressed, and this has been driven by both positive sales levels for services and improved performance from manufacturing.

Overseas sales also have improved, particularly for manufacturing which showed a 3% climb this quarter. However, further results for ‘services’ show a decline in performance, and orders has remained relatively unchanged.

On a positive note, cashflow has recovered well after declining results the last two quarters, with noticeable improvements across both services and manufacturing.

Whilst business conditions have remained steady, inflation still remains a key concern for Lincolnshire businesses. Last quarter, raw material was cited as the main reason businesses felt pressure to increase prices, but this quarter 50% of respondents reported ‘other overhead costs’ as the key reason.

43% of businesses in Lincolnshire reported ‘inflation’ as a concern with 38% expecting to increase prices of good over the next three months.

Overall, business confidence has returned after much uncertainty previously this year, and balances for both future profitability and turnover have seen big increases – which is the most likely rationale for a rise in confidence.

Dr David Gray, Principal Lecturer at the University of Lincoln also commented on this quarter’s results saying:

“Although the figures point to a more positive outlook than the last quarter, they appear to reflect greater uncertain holding back investment.

“Sales growth particularly overseas should have performed better”.

Simon Beardsley, Chief Executive at Lincolnshire Chamber of Commerce spoke about the importance of the results for local businesses saying:

“The QES continues to be an essential tool for local businesses, helping to paint a clear picture of the needs, gaps and trends within Lincolnshire and show how well the local economy is performing.

“The results this quarter are fairly stable despite some of the uncertainties we have been faced with over the course of the year so far.

“This shows resilience and strength, but it will also be interesting to see the results next quarter and see how they measure up.

“As always, we encourage Lincolnshire businesses to continue filling out the survey to ensure we receive the most accurate results possible.

“By doing so, we will see greater and better tailored support given to help bridge gaps where it is needed”.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

£1.1m engineering skills boost for Sheffield

In a national first, teenagers at UTC Sheffield will develop a new range of in demand high-level digital engineering skills following a £1.1 million...

Cable cleat manufacturer expands North Yorkshire headquarters

Cable cleat manufacturer, Ellis Patents, has invested £500,000 in a 25 per cent expansion of its North Yorkshire headquarters. The main element of the expansion...

Time Out: Spencer Coffin, director of Procure Direct

The weekend is just around the corner and that means another ‘Time Out’. This week Business Link talks to Spencer Coffin, director of Procure...

Yorkshire hydroelectric projects acquired

Two hydropower projects in Yorkshire have changed hands as part of a £4.74 million acquisition. The deal sees JLEN, a listed environmental infrastructure fund, swoop...

Leeds med-tech firm raises £2.2m via share placing

Surgical Innovations has successfully raised £2.2 million to reinflate working capital, invest in new product development and sustainability support initiatives. The AIM listed Leeds-based med-tech...

ITM Power part of major hydrogen partnership

Sheffield hydrogen specialist, ITM Power, is one third of a new partnership which aims to use the clean renewable fuel to help Scotland achieve...

Related news

£1.1m engineering skills boost for Sheffield

In a national first, teenagers at UTC Sheffield will develop a new range of in demand high-level digital engineering skills following a £1.1 million...

Cable cleat manufacturer expands North Yorkshire headquarters

Cable cleat manufacturer, Ellis Patents, has invested £500,000 in a 25 per cent expansion of its North Yorkshire headquarters. The main element of the expansion...

Time Out: Spencer Coffin, director of Procure Direct

The weekend is just around the corner and that means another ‘Time Out’. This week Business Link talks to Spencer Coffin, director of Procure...

Yorkshire hydroelectric projects acquired

Two hydropower projects in Yorkshire have changed hands as part of a £4.74 million acquisition. The deal sees JLEN, a listed environmental infrastructure fund, swoop...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close