Business on the rise across all sectors

Friday 19 July 2019

Just one in three local businesses saw their activity increase in the second quarter of the year, according to new figures.

The figures were revealed in the latest Business Tendency Survey released this week by independent analysis unit Statistics Jersey.

In June 2019, the all-sector business activity indicator - a measure of the total amount of work undertaken by businesses operating in Jersey - was positive, with a value of +16 percentage points, with only 15% of businesses reporting a decline.

Over half (55%) of companies reported that business activity was unchanged.

The business activity indicator was positive overall. Finance was strongly positive and non-finance slightly positive: https://t.co/IHzbpNBhzE pic.twitter.com/PVxnNU0fgn

— Statistics Jersey (@JsyStats) July 17, 2019

The business activity indicator was strongly positive for the finance sector (+33pp) and slightly positive for the non-finance sector (+8pp). Over a third (38%) of finance companies reported that business activity had increased, compared with a quarter (27%) of non-finance companies.

Within the non-finance sector, the business activity indicator for June 2019 was positive for wholesale and retail (+16pp), negative for construction (-10pp), and slightly positive for other non-finance businesses (+9pp).

46% of companies reported increases in input costs while very few (4%) reported decreases. 28% of finance companies reported increases while the proportion was of 53% in the non-finance sector.

Almost half (46%) of businesses said input costs are higher, while 27% have increased product prices: https://t.co/IHzbpNBhzE pic.twitter.com/RehR4ILemL

— Statistics Jersey (@JsyStats) July 17, 2019

11% of finance companies increased their prices and a third (34%) of non-finance business did the same.

Outlook for the next three months looks positive with a quarter (27%) of businesses expecting to see an increase, compared to 14% expecting a decrease. The remaining 60% is not anticipating any change.

Commenting on the survey's findings, Jersey Finance CEO Joe Moynihan said: “The picture is broadly in line with the previous quarter, and this sort of consistency should resonate well with investors. The fact that the majority of indicators were once again positive for the industry this quarter is reassuring given the continued geopolitical uncertainty, particularly surrounding Brexit and UK politics, underlining the faith investors have in Jersey as a stable International Finance Centre."

Pictured: Jersey Finance CEO Joe Moynihan.

He continued: "Particularly pleasing are the significantly positive figures for business activity, employment and profitability this quarter, with the survey revealing that 51% of finance companies predict an increase in employment and 68% an increase in profit in 2019.

"This chimes with what we are seeing on the ground - funds business in Jersey reached new record highs in 2018 and employment in the industry is at its highest ever level, reflecting clear positivity and confidence in the industry.”