In the last quarter of 2016, the overall findings from the Q4 2016 suggested that growth in Norfolk would continue in 2017, albeit at a more modest pace. However, the survey found that firms in both sectors, particularly in manufacturing, are facing pressure to raise prices, principally as a result of the cost of raw materials and other overheads.
So, at the start of 2017, is the Norfolk economy continuing to grow? Today (Monday 20 February 2017) is the first day of the fieldwork period for the Q1 Quarterly Economic Survey (QES). It is more important than ever that as many Norfolk businesses as possible complete the survey.
The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy. It is also closely watched by the International Monetary Fund.
You can have your say by completing the QES online NOW, which takes less than 3 minutes. The completion deadline for this survey is midnight on Monday 13 March 2017.
Some key Norfolk findings in the Q4 2016 survey:
- Overall, the figures for both sectors indicate continued expansion, but at a lower level for the services sector than before the EU referendum
- There was a considerable rise in the balance of firms in both sectors expecting the prices of their goods and services to increase over the next three months. This pressure is predominately as a result of an increase in raw material prices following the post-referendum devaluation of Sterling
- In the manufacturing sector, the balance of firms reporting improved export sales remained broadly steady.
- Domestically, the balance for services firms rebounded slightly, after falling considerably in the last quarter. Domestic sales were up from +10% to +24% and orders rose from +0% to +20%.
- Having dipped in the last quarter, the manufacturing sector are reporting higher balances of firms investing in plant and machinery, with an increasing balance from +13% in Q3 to +27% this quarter.
- More firms in both sectors are reporting confidence that their turnover will increase. The balance of manufacturers rose from +39% to +63%, while services increased from +28% to +35%. While confidence in profitability also rose from +13% to +52%, it rose from +6% to +20% in the services sector.
