Firms across Bath and the West of England ended 2015 on a positive note with higher domestic and international sales, according to the results of Business West’s latest survey.
Almost two thirds also said they were confident for the year ahead. But with slightly fewer firms planning to recruit over the next three months, worsening cashflow and orders this quarter, and with most major indicators slightly down compared to a year ago – along with the slowing global economy – 2016 is likely to be a year of challenges, the region’s largest business organisation warned. 
It called on the Government to act on “fundamental issues” such as infrastructure and skills that it said were holding back local businesses.
Nearly 300 firms in Bath, Bristol and the West took part in the last Business West quarterly trends survey in November.
The results show higher domestic sales were achieved by 45% of respondents – up seven percentage points on the third quarter – with exports up four points to 33%.
Business confidence remained relatively constant at 63%.
However, the results also revealed weaker recruitment figures, cashflow and orders compared to the same period in 2014.
Business West’s James Durie, pictured, said: “These results provide some positive news after we saw decreases across the board in the summer. With domestic and international sales on the up this quarter, you can see why almost two thirds of businesses tell us they are feeling confident.
“Although we have seen a small pick-up in the overall economic outlook after slightly disappointing results last quarter, marginal drops in recruitment and cashflow are cause for concern, and with most indicators below levels seen this time last year there are warning signs of potential troubles ahead.
“This research, along with the Chancellor’s warning that the UK faces a ‘cocktail’ of serious threats from a slowing world economy, makes it vital that the government makes 2016 a year of action on fundamental issues such as infrastructure and skills which are holding businesses productivity back.”
Business West represents more than 16,000 businesses across the South West through its network of chambers of commerce and initiatives.
