More Staffordshire businesses expect their profits to grow over the next year despite rising costs and global uncertainty, a new survey has revealed.
Staffordshire Chambers of Commerce collected responses to its Quarterly Economic Survey (QES) for the second quarter of 2026 during May, against a backdrop of rising fuel prices, inflation and conflict in the Middle East.
The responses show a marked rise in business confidence, with 57.8% of respondents anticipating an increase in profitability over the next 12 months, up from 42% in the first quarter. The number expecting profitability to fall dropped from 19.6% to 14.8%.
Confidence in future turnover also edged up, with 61.3% of businesses expecting growth over the next 12 months, while the number of businesses expecting to raise their prices fell from 42.1% to 36.6%.
The outlook for jobs improved, with 27.5% of businesses expecting to grow their workforce in the next three months, up from 20.3%, while just 2.8% expect to reduce staff numbers, down from 4.5%.
Declan Riddell, Policy Adviser at Staffordshire Chambers of Commerce, said: “We’re around halfway through 2026, and the year will already go down as one of the most challenging for businesses.
“Amidst all the gloom, it was good to note some chinks of light from the responses in our latest QES.”
“As well as the profit optimism, there was also a rise in investment, with the number of businesses reporting increased spending on plant, machinery and capital up from 11.3% to 20.4%. Investment in training also rose.
“These numbers help to build a snapshot of business confidence here in Staffordshire and the data will help to underpin our policy and lobbying work.”
Export performance improved, with a slight uptick in the number of businesses reporting growth in overseas sales over the past three months and a rise in advanced export orders.
On the negative side, there was a drop in the number of businesses reporting an increase in domestic sales in the last three months, down from 36.8% to 35.9%, and a fall in the number reporting growth in advanced orders, customers or bookings, down from 33.1% to 31%.
Cashflow was a concern, with 22.5% of businesses reporting an increase, down from 30.1%, while the number reporting a decrease rose from 21.8% to 25.4%.
Fewer businesses tried to recruit in the past three months, down from 42.9% to 40%, and there was a slight rise in the number of businesses reporting a reduction in workforce numbers over the same period.
Labour costs remain the biggest source of pressure to raise prices, with energy costs now the second most common response. Inflation and taxation were the external factors causing businesses most concern.
