The GC Situation Report, July 2024, contains leading economic data from businesses in Greater Manchester. This month’s survey findings are based on responses from 679 surveys completed between 2nd April and 2nd July 2024. 

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

Business Confidence and Investment 

• Business confidence stand at 7.3 out of 10, which is at the same level of the previous survey result (7.3/10). Highest confidence in Engineering, Green-Tech, Business Finance, and Education; lowest in Tourism, Hospitality & Leisure. 
• 38% (vs 37%) 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 

• 23% of firms reported increased sales (vs 21% prior), with 64% anticipating profit growth in the year ahead (vs 62%), while only 2% foresee profit decline; the main sectors showing sales optimism are Manufacturing, Engineering, Retail & Wholesale and Business Finance. 
• 60% (vs 60%) of firms report that they have cash reserves to last over 6 months. 47% of SMEs with 0-49 employees have cash reserves to last over 6 months. Reserves were highest in BFPS, Creative Digital Tech, Manufacturing, and Retail. 
• 24% (vs 17%) of firms said they had cashflow problems. Micro-size firms (<5 employees) were more likely to report cashflow issues compared to SMEs (49-250+ FTEs). Cashflow risks were more likely to be reported by firms within DCT, Hospitality, Retail Services. 

Recruitment and Skill Gaps 

• 25% (vs 26% previously) of firms surveyed are currently recruiting new staff. 
• 39% (vs 40%) 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 53% (vs 52%) - highest in Digital Technologies, Manufacturing, BFPS, and Green Technologies and Retail.  
• The next most popular challenges were developing new products / services 36% (vs 36%), developing business models 34% (vs 32%), managing business finances 31% (vs 30%), and addressing workforce development/skills was reported by 23% of firms (vs 24%). 
• Looking further to the year ahead, the main support areas identified are innovation, with 39% (vs 39%) of firms refer to it as a priority. This was followed by business planning 39% (vs 37%), and marketing at 37% (vs 36%). Workforce development is a priority for 30% of firms (vs 30%), 29% (vs 29%) said financial advice, and 18% (vs 20%) said they wanted help in addressing their environmental impact.