Staffordshire businesses have begun to show some optimism in their outlook in what has been a challenging year for business.
Results from the latest Quarterly Economic Survey (QES) show an uptick in both domestic and overseas sales performances reported in the previous three months as well as more businesses trying to recruit staff and increasing their investment in plant, machinery, capital and training.
But tough trading conditions are reflected in responses which show businesses reporting a drop in cashflow, a growth in those expecting turnover to fall and a reduced number of businesses anticipating growth in future profitability.
The Q4 survey by Staffordshire Chambers of Commerce ran between 10 November and 5 December with many of the responses sent in the run up to the Autumn Budget.
Positives reported were:
- 35.3% reported an increase in past sales (up from 30.8%).
- 26.7% reported an increased workforce in last three months (up from 22.1%) and 10% reported that workforce had reduced in last three months (down from 12.3% Q3).
- 48.7% have tried to recruit (up from 36.3%).
- 20.7% reported an increased investment in plant, machinery and equipment (up from 13.3%)
- 26.7% reported an increase in training investment (up from 17.7%).
But on the negative side:
- 26% reported a drop in cashflow (up from 20.3%)
- 12% expect turnover to decrease (up from 8.8%)
- 47.3% anticipate a need to increase their prices over the year (up from 32.7% in Q3)
- 44.7% anticipate an increase in profitability (from 46%) and 18.7% expect it to decrease (up from 9.7%).
The Chamber’s QES is the leading independent business survey in Staffordshire and results are sent to the British Chambers of Commerce to build a national picture which is used in national policy discussions.
Businesses were also asked about top cost pressures, with labour costs coming out on top, followed by utilities.
Declan Riddell, policy advisor at the Chambers, said: “Our latest QES results appear to show some positive signs, with the news that more businesses had reported a growth in both domestic and overseas sales. Throughout the year, there had been a trend of businesses appearing to pause or even cut investment in plant, machinery and training. It was therefore, welcome news to see more businesses expanding their investment in these areas.
“On the negative side, survey results suggest that more businesses are expecting to hike their prices in 2026 and not surprisingly, labour costs remain as the biggest cost pressure.
“The outlook for SMEs in 2026 will continue to be challenging. Inflationary pressures, specifically from rising labour and energy costs, are likely to persist.”
