GC Business Survey

Latest report: 6th January 2023

The full GC Situation Report contains detailed data on the economy, and results of the GC Survey and Business Confidence Index. It also provides headline data for local authorities in Greater Manchester.

Download the latest full GC Situation Report here.

Download the report infographic here.

GC SITUATION REPORT AND BUSINESS SURVEY RESULTS

This month’s GC survey report findings are based on 193 surveys completed with firms (almost all in Greater Manchester), between the 5th December 2022 to 6th January 2023.
The latest results show that confidence continues to be strong in the face of difficult economic circumstances. However, the main risks are high costs, supply chain issues, and cashflow issues.
Cost risks have increased slightly in the latest survey and is a major problem for over a third of firms, and cashflow problems are continuing to affect a fifth of businesses as a serious risk.
The main business support needs are innovation support, planning, and marketing; and whilst recruitment /vacancy numbers are falling, over half of firms have reported workforce skill gaps.
- The main gaps in workforce skills reported by survey respondents are sales skills, management & leadership, digital skills, and team leadership / team working.
The latest economic data from ONS shows that the UK is estimated to have entered a recession in the third quarter of 2022, which could last until the end of 2023.
While the duration of the current downturn may be relatively long, the drop in activity is expected to be mild by historical comparisons.
Inflation is squeezing households’ purchasing power, and is expected to gradually ease during 2023 but not before leading to a rise in interest rates and cooling of the housing market.
Business investment will be hit by higher interest rates, continued uncertainties, and energy price risks. The outlook could turn more positive, if energy costs drop back to previous levels.
The number of UK registered company insolvencies in November 2022 was just over 2,000: 21% higher than in the same month in the previous year, and 35% higher than the number registered 3 years previously.
Insolvencies averaged just under 6,000 for the last quarter of 2022 – level last seen only during the major recessions (2008, and 1992). RedflagAlert predict roughly 27000 insolvencies through the year.