IT’S been another difficult quarter for businesses across Herefordshire and Worcestershire due to the pandemic, says the latest quarterly report from the two counties’ Chamber of Commerce.
Sales grew by nine per cent compared to last quarter but growth has slowed dramatically.
In Quarter 3, after the first lockdown was lifted, sales had increased by 57 per cent.
The report says cashflow continues to be a problem for many businesses.
For the third quarter in a row, more businesses experienced a reduction in their cashflow than those experiencing an improvement.
While government schemes, including loans and grants have been invaluable, it remains to be seen whether the extension of existing schemes will be enough to sustain businesses through a difficult winter.
Business investment also remains chronically low with many firms having to continuously monitor expenditure during a time of crisis rather than being able to invest.
Added to this is the uncertainty of the EU exit negotiations.
However there is some good news says the report.
The announcement of Covid-19 vaccines seems to have increased business confidence.
Confidence in yearly turnover has quadrupled since last quarter to 19 per cent and employment intentions have also risen.
In all 22 per cent of businesses expect their workforce to increase over the next three months, compared to an average of 25 per cent since the Economic Survey began in 1999.
Sharon Smith, chief executive of Herefordshire and Worcestershire Chamber of Commerce, said: “The UK economy will only be able to recover once there is more certainty surrounding both EU Exit and any future Coronavirus restrictions.
Although a tiered approach is clearly preferable to a national lockdown it still places significant challenges on businesses who have already had to deal with crippling restrictions for most of 2020.”