Economy looking up - but worries remain over retail

Wednesday 22 January 2014

Signs of continued improvement in Jersey’s finance and construction sectors have led to the most positive Business Tendency Survey figures to date.

The numbers – based on a survey of businesses across all sectors – showed that 24% of firms were reporting more activity at the end of 2013 than in the previous quarter, compared to 22% reporting less. The difference in the finance sector was much stronger, with 29% of firms reporting a positive change compared to just 6% saying things had gone backwards.

Crucially, more than half of all finance firms expect to pick up more business in the future.

But the news was not all positive – the employment indicator in the finance sector dipped slightly, and there was more bad news in the profitability and business activity measures for the struggling retail sector.

The news comes on the same day that the UK Office for National Statistics has published unemployment figures that show the biggest quarterly fall since 1997, bringing the headline rate to 7.1% - just a fraction over the 7% target that the Bank of England set to flag up the prospect of an interest rate rise.

Chamber of Commerce president James Filleul welcomed the figures, but said that economic recovery should remain the top priority in 2014.

He said: “Chamber welcomes the positive aspects in the most recent business tendency survey, in particular the indications that our main industry, finance is strengthening. Additionally, after the deep problems of the last few years, some more positive signs in the construction industry are very good news – but there is much work still to do here (56% of firms were less profitable than in the previous quarter), and we would echo the FPP in urging major states projects to be brought though as quickly as possible – that workflow is essential.”