Staffordshire businesses are reporting signs of improvement with domestic sales, cashflow and investment, but rising workforce pressures and weaker export activity are creating a mixed picture for the local economy.
The results from the latest Quarterly Economic Survey (QES) by Staffordshire Chambers of Commerce covers the third quarter of 2026.
Some 38.2% of businesses surveyed said past sales had increased over the period, up from 35.9% in the second quarter, while the proportion reporting a fall dropped from 18.3% to 10.5%.
Future orders, customers or bookings also improved, with 36.8% reporting an increase, compared with 31% in Q2. The proportion reporting a decline fell from 17.6% to 11.8%.
Cashflow also strengthened, with 27.6% of businesses reporting an improvement, up from 22.5%, while those reporting a fall dropped from 25.4% to 15.8%.
Businesses also reported increased investment in training, with 35.5% increasing spending compared with 29.6% in the previous quarter.
However, the survey highlighted continuing pressure on employment and investment. The proportion of businesses increasing their workforce fell from 23.2% to 19.7%, while those reporting a reduction rose from 10.6% to 18.4%.
Although 27.6% expect their workforce to grow over the next three months, up marginally from 27.5%, the number expecting a reduction increased from 2.8% to 7.9%.
Export performance also weakened, with just 2.6% reporting increased overseas sales, down from 4.2%.
Investment in plant, machinery and equipment fell, with 18.4% reporting an increase compared with 20.4% in Q2.
There were some positive signs for business confidence, with 61.8% expecting turnover to increase over the next 12 months, up from 61.3%, while those expecting a fall dropped from 11.3% to 7.9%.
The proportion expecting prices to rise also fell, from 36.6% to 31.6%.
However, labour costs remained the biggest pressure on prices, followed by utilities, while inflation and taxation were the most commonly cited external factors affecting businesses.
Results of the survey help to inform the Chamber’s policy and lobbying work.
Declan Riddell, Policy and Public Affairs Manager at Staffordshire Chambers of Commerce, said: “While there are some encouraging signs in this quarter’s results, businesses continue to operate in challenging conditions.
“We welcome positive aspects particularly around domestic sales, cashflow, training and business confidence, but there are also areas of concern, including employment, exports and investment.
“We would like to thank all the businesses who took the time to complete the survey. Their input is hugely valuable in helping us understand the challenges and opportunities facing businesses across Staffordshire.”
