A SURVEY business owners in Oxfordshire has shown that confidence is at its lowest level for two-and-a-half years.
Lloyds TSB Commercial collected the views of 166 businesses in Oxfordshire, Gloucestershire and the South Midlands on the year ahead for it’s bi-annual Business in Britain report, which was published on Monday. Two thirds of the businesses polled are worried about weak domestic demand for their products and services and believe this to be the biggest potential threat to their income.
The survey showed that as a result of the unstable economic climate, 20 per cent of firms planned to reduce their investment spending over the next six months, yet 50 per cent plan to keep investment levels unchanged.
Trevor Williams, chief economist of Lloyds Bank Corporate Markets, said: “The Euro area sovereign debt crisis - and lack of a comprehensive solution - has for some exacerbated existing concerns about domestic economic weaknesses. As a result, firms are holding back on crucial decisions regarding investment and recruitment. "
Mr Williams said that the survey suggests that over the first six months of 2012 businesses are likely to see a period of zero to negative growth. “The outlook further out will depend partly on whether sufficient progress can be made to resolve the Euro crisis and whether businesses act to seize opportunities to invest and grow,” he said.
But Iain Nicholson, director of countywide business network, OTCN, believes the survey reflected Oxfordshire business owners' plans to keep investing in 2012. He said: “The survey suggested 70 per cent of firms plan to increase investment or maintain it at current levels. That’s in-keeping with the mood of being positive, and moving forward but doing so sensibly and with control on costs.”
Despite the Eurozone crisis, 32 per cent of businesses said they were optimistic about overseas demand, a rise of five per cent since the last survey in 2010. The majority of firms, 66 per cent, expect to keep staffing levels as they are for the next six months, 15 per cent plan to take on more staff and 16 per cent were planning redundancies.
Iain Nicholson said: “While there is no doubt the situation remains challenging, there is an ever-growing list of Oxfordshire businesses, across a range of sectors, reporting strong performance and impressive financial results.
“These include the likes of Prodrive boosting jobs, MINI Plant Oxford announcing record sales, business parks like Jennings Monument Park at Chalgrove reporting high occupancy levels, and the likes of Oxford Instruments, Harley-Davidson, London-Oxford Airport, Hunts People in Print, Templars Square Shopping Centre in Cowley and Four Pillars Hotels among those releasing good numbers.”
