The GC Situation Report, June 2024, contains leading economic data from businesses in Greater Manchester. This month’s survey findings are based on responses from 567 surveys completed between 2nd March and 2nd June 2024.

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

Business Confidence and Investment

• Business confidence rose slightly (7.3/10) compared to the previous survey result (7.2/10) indicating an increase in growth and out of recession. Highest confidence in Engineering, Green-Tech, Banking & Insurance, Education; lowest in Hospitality & Tourism.
• 37% (vs 48%) of firms expect to increase cap-ex spending in the year ahead. Green-Tech, Manufacturing, CDT, Retail, and Green Services are most likely to increase cap-ex overall.

Sales and Cashflow

• 21% of firms reported increased sales (vs 17% prior), with 62% anticipating profit growth in the year ahead (vs 61%), while only 2% foresee profit decline; the main sectors showing sales optimism are Manufacturing, Digital and Creative Technologies, Retail, Business Services.
• 60% (vs 63%) of firms report that they have cash reserves to last over 6 months. 41% of SMEs with 10-249 employees have cash reserves to last over 6 months. Reserves were highest in BFPS, Creative Digital Tech, Manufacturing, Retail and Wholesale.
• 17% (vs 19%) of firms said they had cashflow problems. Micro-size firms (<5 employees) were more likely to report cashflow issues compared to SMEs (10-249 FTEs). Cashflow risks were more likely to be reported by DCT, Hospitality, Retail and Services. Late payments were reported by just 5% of organisations (vs 8%)

Recruitment and Skill Gaps

• 26% (vs 26% previously) of firms surveyed are currently recruiting new staff.
• 40% (vs 41%) 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 52% (vs 56%) - highest in Digital Technologies, Manufacturing, BFPS, and Green Technologies.
• The next most popular challenges were developing new products / services 36% (vs 40%), developing business models 32% (vs 40%), managing business finances 30% (vs 29%), and addressing workforce development/skills was reported by 24% of firms (vs 26%).
• Looking further to the year ahead, the main support areas identified are Innovation (39%, down from 42%), business planning (37%, down from 38%), marketing (36%, down from 
  38%).