The results of the latest QEI for the region were released at a webinar hosted by Dundee & Angus Chamber of Commerce (DACC) and Angus Economics this morning.
The survey, conducted throughout November 2020, highlighted that:
- Businesses across the Dundee & Angus area are now operating at 71% of capacity on average, which is an improvement from the average of 54% recorded in Q2 and 69% in Q3.
- Businesses across the region are feeling positive about sales, most noticeable when companies are assessing expected export sales, with 47% of companies now expecting an increase during the next 3 months.
- Business optimism is generally higher than 3 months ago but remains significantly lower than it was at this time last year.
- 52% of businesses now expect their business prospects to improve over the next 12 months, but 6% remain concerned that they may not even survive
Alison Henderson, CEO of Dundee & Angus Chamber said “Our closing Chamber Economic Indicator Report for 2020 sees a suite of really interesting results against a background of a year where we’ve witnessed a pandemic that none of us could have predicted would have such a long-term impact.
As Scotland breaks the 100,000 positive Covid-19 results barrier from testing and we look to the festive period, there remain significant challenges for every sector dealing with economic impacts – even if that means increased sales and demand.
The Chamber network are actively working with the Scottish Government to get the clarity that businesses need following publication of the COVID-19 Strategic Framework, continuing to lobby for suitable financial support and strive to shape a clear long-term exit strategy from restrictions to restore business confidence.
We can see from our local business engagement work that there is an encouraging trend in business confidence here, with quarter-on-quarter improvements in our Business Sentiment Indicator.
Exporters and many specific sectors are reporting positive signs – we very much hope that positivity is carried through further into 2021.”
Dr Shona Dobbie, Angus Economics commented “Our survey results show further signs of improvement in business activity across the Dundee & Angus area but the pace of change has lessened since the summer.
Over the last 3 months we have seen an encouraging uplift in both business revenue and orders and a very significant improvement in cashflow, which is critical for the health of any business. But, on the downside, the fact that profits remain subdued is feeding through to weaker investment and we have also seen a deterioration in employment conditions.
Looking forward, however, it is encouraging to see that local businesses are generally expecting conditions and activity to continue to show some further signs of improvement.”
You can read the full report here and watch the recording from the webinar over on our YouTube Channel from Thursday 10 December.