East Lancashire businesses react to news of recession's end

ECONOMIC recovery in the region relies heavily on how other countries perform, according to an East Lancashire business leader.

This week it was announced the UK had come out of recession after a one per cent rise in output in the three months from July to September.

And there are some signs of recovery in East Lancashire according to businesses in the area.

Mike Damms, chief executive of the East Lancashire Chamber of Commerce, said outside factors had a large bearing on how the county performs.

He said: “The trouble with East Lancashire is that it is not an isolated economy.

“It is one of the world’s great trading areas. We trade with everybody and everywhere.

“So how those other countries are doing has a great bearing on how we do here in East Lancashire.

“But generally speaking, there has been a lot of economic recovery in the region over the last nine months, not just three, which is why we have seen a growth in employment.”

Nationally, there were doubts over the strength of the the UK’s recovery from the longest double-dip recession since 1950.

The growth in output was flattered by the effects of the Olympic Games and a bounce back from the Queen’s Diamond Jubilee celebrations in the previous quarter.

The UK has been battling against sluggish consumer spending, Government cuts and high unemployment, while the struggling eurozone has hit exports.

While the third quarter beat expectations and grew at the fastest pace since the third quarter of 2007, the economy was still 3.1 per cent below its peak in the first quarter of 2008.

Chancellor George Osborne said the UK still faced “many economic challenges at home and abroad”.

Your view

I haven’t seen any improvement recently and I suspect nobody else has.

There hasn’t been any difference since the new Government came in.

Trade has been slowly declining for about two or three years.

You just have to deal with things like this and work even harder.

Tom Turner, Turner’s Butchers, Darwen Market

We aren’t complaining at the moment.

On the industrial side of the business there has certainly been an uptake in interest recently and a more positive attitude, and that has been mirrored in the retail aspect.

When they make an announcement like this one it is a psychological thing as it puts people in a positive mindset and gives people the feel good factor that we aren’t in a recession.

Peter Hobkirk, Hobkirk’s Sewing Machines, Blackburn

It has been a tough couple of years but the town is definitely picking up.

People are starting to spend again, but there are still tough times ahead I think.

I have been here now for two years and I am building the business up but I am happy with the way things are going.

You see a lot of big firms going out of business, but I am still here.

Amanda Hanson, Sweet William Florists, Burnley

Business is challenging and people are being more careful.

We have to convince them that spending money in our shop is a good idea and that they are getting value for money.

Yesterday’s announcement is good news. It has been a tough time but I am optimistic we will be busy over the Christmas period.

Peter Jackson, Peter Jackson The Jeweller, Blackburn

I think there has been a lot of fear but even before this announcement, people who were previously worried about spending on luxury items, such as grapes, are now loosening up a bit and treating themselves.

I would say we are going the right way now.

Businesses can get caught in the atmosphere of a recession and park up, but we have tried to keep moving.

It is the overheads that kill traders, like business rates. We could do with some help from the Government with that.

Duncan Allton, All Fruits, Burnley Market

We are one of the few companies that has done quite well despite the recession.

There was a bit of a slow down after the Olympics but now we are as busy as ever.

We have taken on 67 new staff this year and it is business as usual.

Jean-Yves Dziki, WEC, Darwen

In the design and maintenance of aerospace technology we have seen a dramatic increase in exports.

I do not believe there has been any recession in this sector.

But there needs to be some more positivity in people.

All of the negativity is bad as it stops people from having the confidence to make investments.

Dennis Mendoros, Euravia, Kelbrook

The recession may have lifted down south but it certainly hasn’t up here.

It is a general struggle from week to week.

Banks just aren’t lending anybody anything to build houses with, so there is very little development.

We have managed to plod along but it hasn’t got any better.

John Clough, Fourtex Dry Lining, Burnley

Comments (8)

Please log in to enable comment sorting

8:34pm Sat 27 Oct 12

Good call says...

Ha ha people think the economy is doing well because of three months, what about the past 4/5 YEARS of recession/depression
.
Ha ha people think the economy is doing well because of three months, what about the past 4/5 YEARS of recession/depression . Good call

9:07pm Sat 27 Oct 12

liddle 'un says...

Good call wrote:
Ha ha people think the economy is doing well because of three months, what about the past 4/5 YEARS of recession/depression

.
You'd need to speak to Gordon Brown re that one.
[quote][p][bold]Good call[/bold] wrote: Ha ha people think the economy is doing well because of three months, what about the past 4/5 YEARS of recession/depression .[/p][/quote]You'd need to speak to Gordon Brown re that one. liddle 'un

9:25pm Sat 27 Oct 12

mavrick says...

Why are all the new jobs in the private sector paying the national minimum wage? I don't know anybody who can live on this wage. perhaps politicians should try it.
Why are all the new jobs in the private sector paying the national minimum wage? I don't know anybody who can live on this wage. perhaps politicians should try it. mavrick

10:30pm Sat 27 Oct 12

Info-warrior says...

Its all propaganda. Any information coming out of the government or the BBC is garbage but on this occasion we can forgive the government for enjoying their moment of satisfaction on the release of GDP figures Thursday that showed the economy had grown by a full one per cent in the third quarter.

The UK has emerged from its double-dip recession after the economy grew by one per cent in the third quarter ending in September. The data was helped by a 0.50 per cent rebound from lost activity in the second quarter as a result of the Queen's Diamond Jubilee and a 0.2 per cent increase from Olympic ticket sale receipts.

The Treasury, and the Prime Minister, David Cameron and the Chancellor, George Osborne, were careful not to sound self-satisfied and admitted that though the figures show the economy is on the right path, there is a lot of work to do.

George Osborne said: “Britain is recovering from a very deep banking crisis. But today you can see that the British economy is on the right track.

“There are plenty of risks out there. Look at the data from the eurozone this week that shows us that there is still a difficult economic situation in the world.”

Shadow Chancellor, Ed Balls, who was yesterday forced to admit that there was a structural deficit in the UK economy in 2007, said: “Our economy desperately needs an injection of confidence. But this is no time for complacency and wishful thinking.”

Chris Williamson, chief economist at financial data provider Markit said: "The government will most likely make the most out of this good news, but unfortunately it is unlikely that the UK will see such a strong performance again for some time."

They were right to sound a note of caution. Yesterday’s figures were welcome but still only mean that the UK economy has been flat for the past 12 months The next major obstacle for global economic growth is the euro debt crisis. This is probably the most vital element impacting on the likelihood of the UK economy emerging from its double-dip recession with steady growth in 2013.

So far, there have been few grounds for optimism that the underlying causes of the euro debt crisis are being effectively addressed. Attempts at imposing austerity measures in the troubled economies of Greece, Spain and Italy have met with resistance and the debt is being contained not reduced. The IMF and other organisations also increasingly take the view that austerity measures could be coming at the expense of growth.

However a growth in the GDP is not the only bit of growing that needs to be done as one of the world's leading environmentalists issued a warning that the global food supply system could collapse at any point, leaving hundreds of millions more people hungry, sparking widespread riots and bringing down governments. In a shocking new assessment of the prospects of meeting food needs, Lester Brown, president of the Earth policy research centre in Washington, says that the climate is no longer reliable and the demands for food are growing so fast that a breakdown is inevitable, unless urgent action is taken.

"Food shortages undermined earlier civilisations. We are on the same path. Each country is now fending for itself. The world is living one year to the next," he writes in a new book.

According to Brown, we are seeing the start of a food supply breakdown with a dash by speculators to "grab" millions of square miles of cheap farmland, the doubling of international food prices in a decade, and the dramatic rundown of countries' food reserves.

This year, for the sixth time in 11 years, the world will consume more food than it produces, largely because of extreme weather in the US and other major food-exporting countries. Oxfam last week said that the price of key staples, including wheat and rice, may double in the next 20 years, threatening disastrous consequences for poor people who spend a large proportion of their income on food.

In 2012, according to the FAO, food prices are already at close to record levels, having risen 1.4% in September following an increase of 6% in July.

"We are entering a new era of rising food prices and spreading hunger. Food supplies are tightening everywhere and land is becoming the most sought-after commodity as the world shifts from an age of food abundance to one of scarcity," says Brown. "The geopolitics of food is fast overshadowing the geopolitics of oil."

His warnings come as the UN and world governments reported that extreme heat and drought in the US and other major food-exporting countries had hit harvests badly and sent prices spiralling.

"The situation we are in is not temporary. These things will happen all at the time. Climate is in a state of flux and there is no normal any more.

"We are beginning a new chapter. We will see food unrest in many more places.

"Armed aggression is no longer the principal threat to our future. The overriding threats to this century are climate change, population growth, spreading water shortages and rising food prices," Brown says.

Stock up on long life foods water medical supplies. Money will have no value soon the euro pound dollar are all about to collapse so you may as well spend what you have. Gold and silver will carry wealth to the new world currency but it won't produce food.

I don't tell you of these easily checkable facts to alarm you or to leave you living in fear of the future only to enlighten you to give you a chance of surviving the on coming attack on humanity.
Its all propaganda. Any information coming out of the government or the BBC is garbage but on this occasion we can forgive the government for enjoying their moment of satisfaction on the release of GDP figures Thursday that showed the economy had grown by a full one per cent in the third quarter. The UK has emerged from its double-dip recession after the economy grew by one per cent in the third quarter ending in September. The data was helped by a 0.50 per cent rebound from lost activity in the second quarter as a result of the Queen's Diamond Jubilee and a 0.2 per cent increase from Olympic ticket sale receipts. The Treasury, and the Prime Minister, David Cameron and the Chancellor, George Osborne, were careful not to sound self-satisfied and admitted that though the figures show the economy is on the right path, there is a lot of work to do. George Osborne said: “Britain is recovering from a very deep banking crisis. But today you can see that the British economy is on the right track. “There are plenty of risks out there. Look at the data from the eurozone this week that shows us that there is still a difficult economic situation in the world.” Shadow Chancellor, Ed Balls, who was yesterday forced to admit that there was a structural deficit in the UK economy in 2007, said: “Our economy desperately needs an injection of confidence. But this is no time for complacency and wishful thinking.” Chris Williamson, chief economist at financial data provider Markit said: "The government will most likely make the most out of this good news, but unfortunately it is unlikely that the UK will see such a strong performance again for some time." They were right to sound a note of caution. Yesterday’s figures were welcome but still only mean that the UK economy has been flat for the past 12 months The next major obstacle for global economic growth is the euro debt crisis. This is probably the most vital element impacting on the likelihood of the UK economy emerging from its double-dip recession with steady growth in 2013. So far, there have been few grounds for optimism that the underlying causes of the euro debt crisis are being effectively addressed. Attempts at imposing austerity measures in the troubled economies of Greece, Spain and Italy have met with resistance and the debt is being contained not reduced. The IMF and other organisations also increasingly take the view that austerity measures could be coming at the expense of growth. However a growth in the GDP is not the only bit of growing that needs to be done as one of the world's leading environmentalists issued a warning that the global food supply system could collapse at any point, leaving hundreds of millions more people hungry, sparking widespread riots and bringing down governments. In a shocking new assessment of the prospects of meeting food needs, Lester Brown, president of the Earth policy research centre in Washington, says that the climate is no longer reliable and the demands for food are growing so fast that a breakdown is inevitable, unless urgent action is taken. "Food shortages undermined earlier civilisations. We are on the same path. Each country is now fending for itself. The world is living one year to the next," he writes in a new book. According to Brown, we are seeing the start of a food supply breakdown with a dash by speculators to "grab" millions of square miles of cheap farmland, the doubling of international food prices in a decade, and the dramatic rundown of countries' food reserves. This year, for the sixth time in 11 years, the world will consume more food than it produces, largely because of extreme weather in the US and other major food-exporting countries. Oxfam last week said that the price of key staples, including wheat and rice, may double in the next 20 years, threatening disastrous consequences for poor people who spend a large proportion of their income on food. In 2012, according to the FAO, food prices are already at close to record levels, having risen 1.4% in September following an increase of 6% in July. "We are entering a new era of rising food prices and spreading hunger. Food supplies are tightening everywhere and land is becoming the most sought-after commodity as the world shifts from an age of food abundance to one of scarcity," says Brown. "The geopolitics of food is fast overshadowing the geopolitics of oil." His warnings come as the UN and world governments reported that extreme heat and drought in the US and other major food-exporting countries had hit harvests badly and sent prices spiralling. "The situation we are in is not temporary. These things will happen all at the time. Climate is in a state of flux and there is no normal any more. "We are beginning a new chapter. We will see food unrest in many more places. "Armed aggression is no longer the principal threat to our future. The overriding threats to this century are climate change, population growth, spreading water shortages and rising food prices," Brown says. Stock up on long life foods water medical supplies. Money will have no value soon the euro pound dollar are all about to collapse so you may as well spend what you have. Gold and silver will carry wealth to the new world currency but it won't produce food. I don't tell you of these easily checkable facts to alarm you or to leave you living in fear of the future only to enlighten you to give you a chance of surviving the on coming attack on humanity. Info-warrior

11:17pm Sat 27 Oct 12

Darwen Malc says...

I was gobsmacked at how very busy it was today (Saturday) in Blackburn. If things were as bad as the doom mongers say, I would have expected the town to be a lot less busy. OK, I accept that there will be people facing hardship, there always have and there always will be, but I do not honestly see it being as bad as some people will have us believe.
And a note on the jobs front, I know of two people within the past six months who suddenly found themselves without jobs, and obtained new employment within a couple of weeks! OK, there might not be jobs for absolutley everyone, but it does go to show that if you are determined enough, you CAN find employment.
So, is there a recession? Probably. Are things so hard? Probably not (in most cases). Are there jobs out there? Yes, if you can be nothered to look.
Are there people who will never get a job? Yes, because they don't want to!
I was gobsmacked at how very busy it was today (Saturday) in Blackburn. If things were as bad as the doom mongers say, I would have expected the town to be a lot less busy. OK, I accept that there will be people facing hardship, there always have and there always will be, but I do not honestly see it being as bad as some people will have us believe. And a note on the jobs front, I know of two people within the past six months who suddenly found themselves without jobs, and obtained new employment within a couple of weeks! OK, there might not be jobs for absolutley everyone, but it does go to show that if you are determined enough, you CAN find employment. So, is there a recession? Probably. Are things so hard? Probably not (in most cases). Are there jobs out there? Yes, if you can be nothered to look. Are there people who will never get a job? Yes, because they don't want to! Darwen Malc

3:36pm Sun 28 Oct 12

Venomp says...

Ask Accrington traders.

As everythings closing.
Ask Accrington traders. As everythings closing. Venomp

11:05am Mon 29 Oct 12

ossym says...

Is this a new competition by the LT.

Rearrange the quotes off local businesses in the coreect order?

Havent got time myself but having little local knowledge know that hobkirks been here a bit more than 2 years + Jacksons jewellers dont sell grapes etc
If these companies were as sloppy as this they'd go to the wall in double quick (even in a boom time)!
Is this a new competition by the LT. Rearrange the quotes off local businesses in the coreect order? Havent got time myself but having little local knowledge know that hobkirks been here a bit more than 2 years + Jacksons jewellers dont sell grapes etc If these companies were as sloppy as this they'd go to the wall in double quick (even in a boom time)! ossym

3:43pm Mon 29 Oct 12

Major Tom says...

So London is out of recession. The rest of the UK will catch up in another 6 years time, hopefully.
So London is out of recession. The rest of the UK will catch up in another 6 years time, hopefully. Major Tom

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree