Firms show sales dip in York

That is the conclusion of the latest quarterly business survey in the City of York Council's bulletin.

The proportion of firms reporting rising turnover figures for the first quarter is 42 per cent, compared with 46 per cent over the same period last year.

Meanwhile 18 per cent reported falling turnover, compared with 13 per cent last year - a nine point increase.

Large firms tended to fare well and smaller firms showed "modest" performance, but hardest-hit were medium-sized firms.

Yet confidence levels that sales figures "will be back" for this latest quarter remained high - 49 per cent of firms expect sales increases and only five per cent predict decline.

While the figures may be slightly less buoyant than those from last year, Tony Bennett, assistant director for economic development for City of York Council sees them as "a very positive indicator for the York economy".

He added: "Most importantly, this confidence needs to be seen as part of a very clear, positive trend that has been apparent in York since early 1999."

If averages were used to remove seasonal factors, business confidence - that is the balance between firms expecting turnover rise and those expecting falls - had improved steadily, from a net 18 per cent at the start of 1999 to 38 per cent.

"Even allowing for statistical variation within the survey and the general over-optimism of business, this trend is very significant and suggests an underlying strength within the York economy."

Other findings show that:

Employment growth has slowed, but even with 260 jobs lost through closures like Thrall Europa, and later that quarter 45 jobs going at Portastor, the city's employment is better than it was a year ago

Investment levels are remaining firm

First quarter exports were again disappointing but showed an improvement of four per cent on the previous quarter.

Updated: 09:39 Saturday, August 16, 2003