Rotherham businesses cautious over outlook

ROTHERHAM business leaders have welcomed news of the continued economic upturn—but warned that there are still tough times ahead.

The British Chambers of Commerce's latest Quarterly Economic Survey suggested that the UK economy had continued growing in the fourth quarter of 2010, but at a slower pace than in the second and third quarters.

Andrew Denniff, executive director at Barnsley & Rotherham Chamber of Commerce, said that there had been “encouraging signs amongst firms, particularly in manufacturing.”

But he cautioned: “Businesses have witnessed some of the toughest years in recent memory.

“However, as the figures for the service sector show, we're not out of the woods yet.

“Faced with public sector cuts and cost pressures, ensuring the health of businesses is critical to a sustained economic recovery.

“We must encourage more new start-ups, more employment, create stronger companies and support export potential.

“While the survey points to our economy recovering, we will continue to call for concerted action now to ensure recovery continues.

“Only a clear growth strategy set alongside existing plans for deficit reduction, will give businesses the confidence to grow through 2011 and beyond.”

The survey suggested that manufacturers are still confident of increasing their expected turnover and profitability in 2011.

But shoppers can expected rising prices as firms try to deal with with the impact of rising raw material costs and the VAT increase.