The GC Situation Report for 2nd May 2024 to 2nd August 2024, contains leading economic data from businesses in Greater Manchester. This month’s survey findings are based on responses from 749 surveys completed between 2nd May and 2nd August 2024. 

Here are the headline figures and trends of the latest economic development: 

Business Confidence and Investment 

• Business confidence stands at 7.3 out of 10, which is at the same level as the previous survey result (7.3/10). Highest confidence in Engineering, Green-Tech, Business Finance, and Education; lowest in Hospitality & Leisure, Retail, and Life Sciences. 
• 42% (vs 38%) of firms expect to increase cap-ex spending in the year ahead. Green-Tech, Manufacturing, CDT, Retail, Green Services, and Health & Social Care are most likely to increase cap-ex overall.   

Sales and Cashflow 

• 19% of firms reported increased sales (vs 17% prior), with 64% anticipating profit growth in the year ahead (vs 64%), while only 2% foresee profit decline; the main sectors showing sales optimism are Manufacturing, Engineering, Green Tech, and Business Finance. 
• 59% (vs 60%) of firms report that they have cash reserves to last over 6 months. 33% of SMEs with 0-49 employees have cash reserves to last over 6 months (vs 47%). Reserves were highest in DCT, Manufacturing, Health & Social Care, and Prof. Services. 
• 18% (vs 18%) of firms said they had cashflow problems. Cashflow risks were more likely to be reported by firms within DCT, Manufacturing, and Retail. 

Recruitment and Skill Gaps 

• 24% (vs 25% previously) of firms surveyed are currently recruiting new staff. 
• 39% (vs 39%) of firms said that their existing workforce skills are at the right level to meet business plan objectives for the year ahead. 

Challenges and Support 

• The main pressing challenges facing businesses in the immediate future are access to new domestic sales opportunities 54% (vs 53%) - highest in DCTs, Manufacturing, Green-Tech, Prof. Services, and Retail.    
• The next most popular challenges were developing new products/services 37% (vs 36%), developing business models 36% (vs 34%), managing business finances 31% (vs 31%), and addressing workforce development/skills reported by 23% of firms (vs 23%). 
• Looking further into the year ahead, the main support areas identified are business planning at 39% (vs 37%), innovation at 39% (vs 39%), and marketing at 35% (vs 37%).