The GC Situation Report, May 2024, contains leading economic data from businesses in Greater Manchester. This month’s survey findings are based on responses from 351 surveys completed between 2nd February and 2nd May 2024.

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

Business Confidence and Investment

• Business confidence dropped slightly (7.2/10) compared to the previous survey result (7.3/10) and less than the average for the last year indicating a recessionary trend. Business confidence varied by sectors and show an increase in Manufacturing, Professional Services, Healthcare, Retail, Hospitality, Tourism, and Leisure.
• 48% (vs 45%) of firms expect to increase cap-ex spend in the year ahead. Green-Tech, Manufacturing, CDT and Retail are most likely to increase cap-ex overall.  

Sales and Cashflow

• 17% of firms reported increased sales (vs 20% prior), with 72% anticipating profit growth in the year ahead (vs 61%), while only 2% foresee profit decline; the main sectors showing sales optimism are Manufacturing, Digital, Creative Technologies, Retail, and Business Services.
• 63% (vs 68%) 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 Retail, Manufacturing, Engineering and Healthcare.
• 19% (vs 20%) 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, Services. Late payments were reported by 8% (vs 6%).

Recruitment and Skill Gaps

• 26% (vs 27% previously) of firms surveyed are currently recruiting new staff.
• 41% (vs 45%) 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 (56% vs 58%), highest in Digital Technologies, Manufacturing, Green Tech, and BFPS. The next most popular challenges were developing business models (40% vs 42%), managing business finances (29% vs 40%), developing new products/services (40% vs 40%), and addressing workforce development/skills (26% vs 28%).
• Looking further to the year ahead, the main support areas identified are innovation (42% vs 40% previously), business planning (38% vs 34%), marketing (38% vs 31%), workforce development (31% vs 30%), financial advice (30% vs 29%), and addressing environmental impact 20% vs 20%).