News  |  Contact Us

Home / News

Barometer_april_10

Island's Economic Recovery is Strengthening

18 May 2010

The sixth Barometer Business on line survey has been released today (18 May 2010) reporting on the quarter from January to March. The report, produced by Natural Enterprise, shows signs that the economic recovery is strengthening on the Island with the stronger performing businesses continuing to move forward, but significantly more businesses have indicated an improvement.

In addition, there has been a clear improvement in business confidence and for the first time over 50% of businesses are more optimistic about the future of their business, a shift away from the cautious outlook reported in the last survey.

Graham Biss, Managing Director, Natural Enterprise said. “Looking ahead to the next six months, the respondents appear optimistic with a third of businesses expecting profit margins to increase however, 21% of businesses continue to expect a reduction in their margins. Overall the outlook appears stronger, with more businesses expecting to see their reported trading conditions continue.”

Key findings from the survey include:

  • The reported impact of Local Authority policies has increased, with 68% of businesses indicating that they are somewhat or greatly affected. The main area of concern continues to centre on procurement procedures and policy.
  • Investment remains subdued, although 59% of businesses now report that investment levels have been maintained. A lower number of businesses have reduced investment.
  • 32% of businesses are now operating at full capacity. This is slightly higher than the comparable position reported 12 months ago.

The Barometer Business survey responses provide an immediate and informative insight into prevailing market conditions. It also provides Island businesses with an opportunity to register issues facing their business and contribute to a better understanding of how the Isle of Wight’s economy is operating.

Natural Enterprise intends to continue to increase the sample size whilst maintaining the representative profile of the Island’s economy. Any businesses wishing to participate or find out more about becoming a Barometer Business should contact Carlene Leonard at Natural Enterprise on 01983 535819.

You can view the latest Barometer Business Reports here