A survey of 406 firms by Belfast Chamber found 71% are pessimistic about the city’s short-term prospects.

It’s the latest survey carried out by the business body in conjunction with Belfast City Council.

Belfast Chamber chief executive Simon Hamilton said it paints “a pretty bleak picture” for business conditions in the city.

“Whilst trading and profitability have both been strong over the past six months, there has been a stark drop in confidence for the time ahead,” he said.

The survey found that firms are less pessimistic when asked about the prospects of their own business or sector.

Just 44% believe their own business will get worse in the coming next months, with 35% predicting similar trading conditions, while 20% expect an improved picture.

But pessimism surged when asked about the city’s prospects as a whole.

“With 99% of businesses seeing fuel and electricity costs rising and other costs also on the rise, coupled with a considerable number of issues around recruiting staff reflected in the survey results, it is easy to see why optimism amongst Belfast businesses has declined,” said Mr Hamilton.

Elsewhere, the new survey showed the very mixed experience of businesses under Brexit and the Northern Ireland Protocol.

One-in-three felt their business has been negatively disrupted by Brexit, while 30% said it had no impact.

Of the 106 Belfast businesses trading in the Republic, 36% reported increased profitability in the past six months and 42% of the 41 firms trading with the rest of the EU also reported higher half year profits.

Simon Hamilton said businesses in Belfast have continued to exhibit an ability to weather whatever storm they may face.

“Although it seems that the impact of the pandemic has receded, it has been replaced by a whole host of new challenges,” he said.

“I am always impressed by the business community’s capacity to adapt and innovate but it is clear that on top of every ounce of resilience they possess, many will need urgent help from both government and a restored executive.”

The post Majority of Belfast businesses worried about economic outlook first appeared on Neighbourhood Retailer.

Retail sales volumes dropped by 1.6% in monthly terms in August, the Office for National Statistics said.

This was the biggest fall since December 2021 and worse than all forecasts in a Reuters poll of economists that had pointed to a 0.5% fall.

All of the main retail sectors – food stores, non-food stores, non-store retailing and fuel – fell over the month for the first time since July 2021, when Covid-19 restrictions on hospitality were lifted, the ONS said.

The period of mourning following the death of Queen Elizabeth poses another challenge to retailers, with widespread business closures due on Monday to mark the queen’s funeral.

Although inflation dipped below 10% last month, households are still grappling with the biggest price increases since the early 1980s, caused mostly by surging energy prices in the aftermath of Russia’s invasion of Ukraine.

The ONS said people also cut back on furniture purchases last month.

“Feedback from retailers suggests that consumers are cutting back on spending because of increased prices and affordability concerns,” it said.

The post Retail sales fall more than expected in August: ONS first appeared on Neighbourhood Retailer.

The impact on Northern Ireland is inevitable. As part of the UK, with specific issues around Brexit, trade and borders – as well as Covid to contend with – many retailers have been hit hard in recent months. Ironically others have fared well, as shoppers opt for the comparative safety of their local independent convenience store.

Retail NI has warned that the high street is not facing a crisis – but an emergency. It has welcomed the NI Executive’s promised task force to tackle the demise of the high street.

There are fears that when the Government’s furlough scheme ends in October, there’ll be a further wave of redundancies. Less cash in the pocket means less spending power for ordinary people. The trickle down effect could be more difficult than previous recessions.

Schemes such as the Government’s Eat Out to Help Out reportedly paid for 10.5 million meals within the first week, yet it’s just a ‘sticking plaster’ approach. The scheme only lasts for one month. Customer loyalty is not guaranteed.

Covid and Brexit could deal business in Northern Ireland with a double-whammy. Ironically, one area that appears to be holding up firmly is in the convenience sector – with symbol groups in particular weathering the storm.

“It’s been a double edged sword,” Judith Mercer of the NFRN told NR. “While some were able to remain open throughout, and saw increased sales of certain items, others had to close for the duration. Sadly a few may not be able to re-open, especially those located in places like Belfast city centre that rely heavily on footfall.”

Easons was just one Northern Ireland chain to cease trading, with WH Smith also announcing wide spread redundancies and restructuring.

The post UK ‘officially’ in Recession first appeared on Neighbourhood Retailer.