The latest Quarterly Economic Survey from East Midlands Chamber paints a challenging picture for businesses in the region, as companies continue to grapple with economic pressures. Survey responses from 354 firms across various sectors indicate a decline in confidence, with fewer businesses expecting profitability improvements or turnover growth in the coming year.
Despite a modest 5% rise in UK sales and 4% increase in orders, overseas performance has been weaker, with sales down 10% and orders down 3%. Inflation has surpassed corporate taxation as the biggest concern for firms, highlighting rising operational costs and the added challenges of trading internationally post-Brexit.
Approximately 40% of businesses are considering raising prices in response to these pressures, a slight decrease from earlier in the year. Recruitment figures show a slight improvement, with half of businesses attempting to recruit new staff, though the struggle to find skilled candidates persists. However, a majority expect their workforce to remain stable, marking a slight decrease in expectations for job cuts compared to previous months.
The survey’s findings underscore the region’s fragile economic climate, with businesses looking to the upcoming Autumn Budget for policy measures to support recovery without adding further.
