West Mids companies planning for growth, says survey
Almost half (49 per cent) of businesses in the West Midlands are planning to invest at least 5 per cent of their turnover back into the business in the next 12 months, according to Yorkshire Bank.
A survey by the bank revealed that the leading investment priorities are new staff, equipment and developing products and services.
Nearly a quarter (24 per cent) of businesses questioned said they believed the economy would return to healthy growth in the next 12 months.
However, despite businesses' intentions to expand, only 34 per cent expect to increase turnover by more than 5 per cent in the next year.
The most pressing concerns for West Midlands businesses are fluctuating fuel prices and rising corporation tax, said the survey, with just under a half (44 per cent) and a fifth (20 per cent) citing these issues as the key factors in their businesses' future growth respectively.
Stephen Cronin, managing partner at Yorkshire Bank’s Financial Solutions Centre in Temple Row, Birmingham, said: "Businesses are clearly more confident about their own prospects and in control of their own destiny than they are for the wider economy, despite the impact of rising fuel and materials prices.
"Our research highlighted what businesses feel will help them and the economy, with increased consumer spending and confidence (29 per cent) and low interest rates (18 per cent) coming out as the key drivers to economic growth."
