The spectre of public spending cuts has dampened the confidence of Bradford’s business bosses who are increasingly concerned about future prospects for their companies.

Confidence levels have dropped as businesses brace themselves for more tough challenges ahead as economic turbulence continues.

The latest quarterly economic survey by Bradford Chamber of Commerce, which represents around 1,100 businesses, reveals that many firms are expecting to face difficult trading, with static sales and order levels and patchy investment activity.

Many companies are also worried about rising external costs, such as fuel and raw materials, which are putting the squeeze on their businesses.

The findings show that the pace of recovery remains slow and firms are nervous about the future due to the effects of public sector spending cuts and international uncertainties. Cashflow has worsened for many businesses and overall confidence has fallen as many firms expect costs to rise in the next three months.

The reduction in confidence has reversed a small improvement in expectations three months ago.

But its not all gloom, with export sales and orders in the service sector having risen significantly and manufacturers reporting improved capital investment with more working at full capacity.

Turnover in the services sector has risen slightly for the second successive quarter. Chamber president Harold Robinson said that, overall, the outcome of the latest survey was disappointing. He said: “No business, no matter what sector, can be sure they are not going to be affected in some way by the spending cuts.

“I think the survey reveals that we are in for a tough year or two before things show a significant improvement.

“We’re not doing any worse locally than anywhere else. The national picture is also lacking in confidence.

“But the fact remains that times are tough. Businesses are being squeezed by costs, are restrained from raising prices due to competition and are still struggling with cashflow.”

  • Read the full story in Thursday's T&A