More retail casualties expected

The latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) survey also suggests that employment conditions remain weak.

The monitor’s Confidence Index has recorded a score of -0.9 for the first quarter of 2012 in Yorkshire and the Humber.

While still well below its recent high of 24.9 in the second quarter of 2011, it compares favourably with the -3.4 figure recorded in the fourth quarter of 2011.

ICAEW regional director Chris Manners said: “There is no doubt that times are still diffi- cult.

“Firms are reporting that both turnover and sales are only up by 1.3 per cent over the last year – a lower annual growth rate than recorded throughout 2011, and the picture for gross profits is weaker still.

“The word on the street seems to be that there have been more retail failures during the first few weeks of 2012 than in 2010 or 2011, and that is without the public sector job losses which have not really started working their way through.

“However, there are signs that turnover will grow on average by 4.9 per cent over the next year, and forecast gross profits and sales volumes will rise by 4.7 per cent and 4.5 per cent respectively over the same period.

“Expectations for these performance indicators have remained robust over the past year, and are broadly unchanged from those reported for the same period a year ago.

“In addition, (in) this quarter export growth expectations remain strong.”