Business confidence in Staffordshire stalled in the third quarter of 2024, according to the latest findings in Staffordshire Chambers’ Quarterly Economic Survey.
A ‘slowdown’ in domestic and overseas sales – coupled with a decline in investment in plant, machinery and capital – was reported by businesses across the county.
While there has been an increase in the number of companies reporting workforce growth over the past three months, fewer businesses expect to expand their workforce in the near future.
Declan Riddell, Policy Adviser at Staffordshire Chambers of Commerce, said: “The results from our latest survey make for interesting reading. We’re hearing anecdotal evidence that businesses are holding back on investment, opting for a ‘wait and see’ approach as to what is announced in the Chancellor’s Budget later this month.
“There is a clear sense that many businesses are pausing investment decisions until the Chancellor’s Budget is announced. Tax anxiety is also on the rise, particularly among manufacturers and SMEs.
“We’ll be watching closely to see what measures are announced in the Budget and will be ready to help businesses understand and respond to any changes.”
Taxation has emerged as the most commonly cited concern among businesses, overtaking previous worries about interest rates and inflation.
Manufacturers and SMEs are particularly troubled by tax burdens, while those in the service sector, such as hospitality, remain more concerned about inflation. Labour costs continue to be the primary cost pressure for businesses, but price increase expectations are beginning to level off.
On a positive note, nearly half (44.4%) of businesses surveyed expect to increase their use of Artificial Intelligence (AI) over the next year, highlighting a growing interest in technological adoption across various sectors. However, only 6.35% of businesses anticipate a future need for staff fluent in an overseas language, with French and German being the most sought-after languages.
All 52 of the UK Chambers of Commerce roll out the QES across their respective regions. The findings – widely recognised as a valuable source of information about economic performance – are shared with the British Chambers of Commerce, Government departments including HM Treasury and the Cabinet Office as well as the Bank of England.
Businesses interested in finding out how the budget will impact them are encouraged to book onto Staffordshire Chambers’ Post-Budget Breakfast event on Thursday, 31st October, hosted by RSM. Click here to find out more.
