Some cause for cheer as end of 2011 nears (Source Express & Echo Business 22.12.11)

BUSINESSES in Exeter have fared better in the final quarter of 2011 than the previous three months, according to the latest survey of Chamber of Commerce members.

It is unclear how much of the increase in sales reported by firms is due to the seasonal pre-Christmas uplift.

But the more positive picture has been welcomed after September's poll suggested sales and profit margins were coming under increased pressure, leading to a dip in business confidence.

Chamber vice chairman Derek Phillips said: "The latest survey results show that members are experiencing an increase in sales and margins, which is very promising indeed.

"The other interesting point is that 46 per cent of businesses are operating at full capacity, which is the highest level for over two years. This is a period when things should be going well in the run-up to Christmas, but I suspect that would be a very unusual result for most other places in the South West.

"People were worried about the autumn quarter but overall it's a positive picture."

The survey, collated to identify the current economic conditions for Exeter and its sub-region, showed the number of respondents whose sales had increased in the past quarter bounced back to 50 per cent, up 10 per cent on September's figure.

Significantly, profit margins were up for a third of businesses – the highest level for over a year – allaying concerns that widespread discounting in the Christmas shopping period will be hurting traders.

Confidence levels were broadly unchanged, with 14 per cent very optimistic about the future and a further 71 per cent reporting medium confidence.

Mr Phillips added: "With all of the latest redevelopments and with the Royal Albert Memorial Museum opening this month I think Exeter is looking ahead to a bright future, albeit with a bit of caution. We will just have to wait and see what happens after Christmas."

During the autumn employment remained fairly stable, with 58 per cent of businesses reporting static employee numbers. Only 26 per cent took on new staff – down slightly from 30 per cent in September – but these figures do not reflect jobs created by recently opened stores such as Urban Outfitters, Waitrose and Marks & Spencer Simply Food.

A quarter of respondents expect to increase the size of their team during the next quarter and over half of all businesses surveyed anticipate increasing employee numbers before the end of 2012. And 10 per cent of respondents expect to take on at least five additional personnel.

The Chamber of Commerce has reported the findings of its latest Exeter Business Survey to the Bank of England's regional agent Stephen Collins, when business leaders from a range of sectors including banking, travel, residential and commercial property summarised their experiences of conditions over the past quarter.