Despite a stronger-than-expected rise in UK GDP, business sentiment in the East Midlands remains subdued, with firms facing persistent cost pressures.
According to the latest Office for National Statistics data, the UK economy grew by 0.7% in the first quarter of the year. While this uptick signals the end of the technical recession seen in 2023, businesses in the East Midlands continue to report low confidence levels.
The East Midlands Chamber’s recent Quarterly Economic Survey data indicates a decline in local business confidence. Key concerns among B2B operators include increased employer National Insurance contributions, the higher national living wage, and corporate tax pressures.
Inflation remains a significant factor, with nearly half of businesses in the region expecting to raise prices. These margin pressures are contributing to cautious outlooks on investment and hiring.
Business leaders in the region are now looking to upcoming policy decisions, including the UK Government’s Comprehensive Spending Review and international trade discussions, for clearer support and incentives to stabilise operating conditions and boost competitiveness.
