Business surveys reveal ‘resilience’ of Stockport economy

The local economy continues to show signs of steady growth, according to the findings of two surveys of businesses in Stockport and across Greater Manchester.

The Growth Company and Greater Manchester Chamber of Commerce both presented their findings on the state of the local economy in their respective Situation Report and Quarterly Business Survey and Quarterly Economic Survey (QES), which both derive their date from surveys of local businesses across the city-region.

The two surveys both revealed that despite macroeconomic headwinds, Greater Manchester’s economy is showing ‘resilience’ and ‘steady confidence’, with businesses in Stockport in particular reporting intentions to increase investment and focus on innovation.

Measuring the confidence of businesses in the region, the Situation Report found that confidence had dropped slightly from August to September, but was largely consistent with recent years.

Confidence levels are above average for Business Financial & Professional Services, but are lower than average in Retail, Green Tech, Life Sciences, and Engineering.

32% of businesses from the borough had seen an increase in investment, while 30% were looking to increase their investment in innovation.

28% of businesses from Stockport said rising costs were an issue, but 62% said they had cash reserves to cover more than the next six months. 44% said workforce skills were an issue, while 50% said that accessing domestic markets was a challenge for them.

Rupert Greenhalgh, Head of Business Intelligence at The Growth Company, said:

“Greater Manchester’s economy is remaining resilient against a backdrop of high inflation and low growth. We are seeing businesses being bullish with their investment in AI and more than one in three firms, 35 per cent, are looking to increase investment and R&D in future.

“Rising costs continue to have an impact on businesses and we are seeing challenges for businesses in accessing new domestic sales, particularly in the Healthcare, Construction and Green Tech sectors.”

The rate of adoption of artificial intelligence (AI) in Greater Manchester also suggests that businesses are anticipating and planning for further growth. A total of 23 per cent of UK firms are now using AI, compared to 43 per cent of those that undertook The Growth Company’s survey. This trend would suggest long-term productivity gains and regional development.

Administered by GM Chamber of Commerce, the Greater Manchester Quarterly Economic Survey is part of the UK’s largest and most reliable business confidence survey. It feeds into the wider North West QES, which goes to the British Chamber of Commerce.

The Chamber’s GM Index suggests there has been a weakening of the economy, and a more pessimistic outlook in the lead up to the budget.  Similarly, it highlights a drop in rate of domestic sales the manufacturing, services and construction sectors.

Subrahmaniam Krishnan-Harihara (pictured), Deputy Director – Research & Information Systems GM Chamber, said:

“We are not anticipating a long-term burst in fortune for the economy, which would suggest that while we aren’t looking at a recession, this is a period of more ‘anaemic’ growth for the region.

“In line with the national picture, economic activity is and the pockets of activity we’re seeing high growth in are heavily reliant on public spending.”

The QES responses found that recruitment efforts had broadly remained consistent, and that the number of businesses experiencing difficulties had dropped from highs in Q4 of 2024.

This is mirrored in the Situation Report, which details that 46 per cent of businesses indicated that the skills in house were only partially at the required level. There was high demand for specialist technical skills, advanced IT skills, and complex problem-solving skills.

The findings of both The Growth Company’s Situation Report, and GMCC’s Quarterly Economic Survey were presented on 24th October at an event at Alliance Manchester Business School, marking the first time the organisations have collaborated to showcase the broader industrial trends being seen across the city-region.

The Growth Company’s Situation Report and Quarterly Business Survey is available in full here.

The GM Chamber of Commerce’s Quarterly Economic Survey is available in full here.