Recent research from the East Midlands Chamber highlights a continued slowdown in trading conditions across the region. Data collected from nearly 300 businesses for the third quarter of 2025 shows that both domestic and international sales have fallen, and a growing proportion of companies are operating below full capacity.
UK sales declined by 3%, while domestic orders dropped 1%. Overseas sales fell 1%, and export orders decreased by 2%. Eight in ten businesses reported operating below capacity, up from seven in ten at the end of 2024.
Pressure to increase prices has eased. Only three in ten firms expect to raise prices in the next three months, a slight decline compared with earlier quarters. Recruitment activity remains steady, with 47% of companies seeking new staff. Around 70% anticipate workforce numbers will remain unchanged, and six in ten firms continue to report challenges finding suitable candidates.
Business confidence shows marginal improvement. Four in ten firms expect profitability to rise over the next 12 months, while half predict higher turnover. Despite this, inflation, corporate taxation, and competition remain the top concerns for regional businesses.
The survey underscores the ongoing pressures on East Midlands firms as they manage rising costs, fluctuating demand, and talent shortages, while preparing for potential policy changes in the upcoming Autumn Budget.
