Figures from the latest Jersey Business Tendency Survey provide good cause for optimism in terms of long-term employment opportunities and profitability in Jersey’s finance industry. The outlook for the construction industry, however, was less positive.
The survey, published last week by the Jersey Statistics Unit and which reflects activity in the final quarter of 2015, shows that finance firms in Jersey are more positive on future employment now than any other time since the survey started, with three-fifths of businesses in the finance sector anticipating employment would increase over the next three months.
Business activity was also strongly positive, up 31 per cent on the previous quarter and returning to a level similar to that seen during the first six months of last year. In addition, the long-term outlook for profits in the industry was very positive, with almost three-quarters of businesses in the sector anticipating that profits in 2016 would be higher than in 2015.
The Jersey Business Tendency Survey (BTS) is a quarterly survey that provides qualitative information about the island’s economy. The survey covers private sector businesses in Jersey and asks the chief executive or managing director of sampled businesses for their opinions on the current situation of their business compared to three months earlier and their expectations for the next three months.
For the non-finance sectors, overall:
• Nine of the ten indicators were essentially unchanged in the latest quarter; the Future Business Activity indicator declined but remained slightly positive
• For the Wholesale & Retail sector, six indicators were essentially unchanged from the previous quarter; two were improved (Business Activity and Employment) and two declined (Input Costs and Future Business Activity)
• For the Construction sector, there was a fall from the overall positive perspective seen in the previous quarter, with five indicators declining, four remaining at essentially the same level, and one improving. The indicators for Future Business Activity and Future Employment declined considerably in the latest quarter, though Future Business Activity remained positive, as throughout 2015
On the figures for the finance industry, Geoff Cook, CEO of Jersey Finance, commented: "The fact that seven of the indicators in this survey have remained essentially unchanged since the previous quarter and that the overwhelming majority of indicators are positive reflects pleasing levels of both stability and confidence in Jersey’s finance industry.
"There is a very optimistic outlook as far as employment and business activity are concerned, with the legal, fund and accountancy sectors still all positive on long-term employment. It is also pleasing that in the banking sector, which has seen considerable challenges globally, three fifths of Jersey organisations are anticipating no change or an increase in job numbers over the course of the year. The indications are that firms large and small expect to remain busy and this is resulting in long-term positivity surrounding profits for the industry, which is clearly welcome news."
The Business Tendency Survey can be found online here.