The latest Chamber Quarterly Economic Survey (QES) results for Staffordshire reveal a mixed outlook for local businesses, with both positive and negative trends reported across key economic indicators.
The QES, the UK’s longest-running independent business sentiment survey, was conducted between 10 February and 7 March 2025, capturing a snapshot of domestic and export sales, the labour market, cashflow and business confidence.
The survey results showed a slight rise in businesses reporting an increase in domestic sales over the past three months, but more businesses reported a decrease in sales. There was also a drop in the number of businesses seeing a rise in advanced orders, customers or bookings, with more businesses expecting a decline in future orders. While past export sales showed a noticeable drop, growth was seen in advanced export sales.
The labour market showed a mixed picture, with fewer businesses expanding their workforce over the past three months. A slight increase in the number of businesses expecting to grow their workforce in the next quarter was offset by a rise in businesses anticipating a reduction in staff. However the survey also highlighted a rise in the number of businesses actively trying to recruit, from 48.5 per cent to 54 per cent.
More businesses reported a drop in cashflow in the previous three months, but there was a significant increase in those investing in plant, machinery and capital, up from 12.6 per cent to 21.8 per cent. More businesses reported increased investment in training, although a growing number of businesses reported reduced spending on staff development.
Business confidence declined, with fewer companies expecting a rise in future turnover, although a greater number anticipated increased profitability. A growing number of businesses also expected prices to rise, citing overheads as the second biggest pressure after labour costs.
The results come nearly five months after the Autumn Budget, with businesses still grappling with key announcements such as increases in employer National Insurance contributions (NIC) and the minimum living wage (MLW). The British Chambers of Commerce will release an aggregated UK-wide summary of QES results at the end of March.
Declan Riddell, Policy Adviser at Staffordshire Chambers of Commerce, said: “Our latest QES is very much a mixed bag of results. Highlights include an increase in the number of businesses reporting a growth in planned investment in plant, machinery and capital, as well as a rise in the number of businesses anticipating future profitability growth.
“On the negative side, survey results suggest a drop in the number of businesses who have actually grown their workforce in the past three months. Cashflow has dropped for more businesses in the last three months and fewer businesses expect future turnover to rise.
“We know that businesses are feeling the pain of rising cost pressures. With prices likely to rise and recruitment challenges ahead, the outlook remains very unsettled.”
