Our latest Quarterly Economic Survey (QES Q3, 2025) results are out and once again there is evidence of subdued business confidence.
QES is the UK’s longest running independent survey of business sentiment and is acknowledged by the Bank of England as a reliable source of measuring business outlook and confidence. QES Q3 surveys were collected between 18th August 2025 and 12th September 2025. All 51 Chambers of Commerce submit their QES results to the British Chambers’ of Commerce (BCC) and this builds into a national picture, which will be revealed in the coming weeks.
For now, let’s look at the survey results in Staffordshire…
30.8% of respondents reported an increase in sales from May 2025 to August 2025 (down from 39.5%, Q2). 20.4% reported a fall in sales during the same three months (up from 14.3% in Q2).
4.4% of respondents reported an increase in overseas sales (down from 8.2% in Q2).
22.1% of respondents reported an increase in workforce between May 2025 and August 2025 (down from 23.1% Q2) and 12.3% reported that workforce had reduced in the same three months (up from 9.5% Q2).
29.2% of respondents expect to grow the workforce between now and the end of 2025 (up from 27.9% Q2) but 10.6% expect workforce to decrease before the end of the year.
36.3% of respondents have tried to recruit between May 2025 and August 2025 (down from 49.7% Q2 and 53.4% Q3 2024) and 63.7% have not attempted to recruit in the same three months (up from 50.3% Q2 and 46.6% Q3 2024).
13.3% of respondents reported an increase in plant, machinery and capital between May 2025 and August 2025 (down from 19% Q2).
17.7% of respondents reported an increased investment in training (down from 26.5% in Q2) and 13.3% reported a decreased investment in training (up from 10.2% in Q2).
54.5% of respondents aanticipate growth in turnover (down from 62% in Q2) and 8.8% expect a drop in turnover (down from 10.2% in Q2).
35.4% of respondents reported working at full capacity (down from 38.8% in Q2)
32.7% of respondents are expecting to announce price rises (unchanged from Q2).
In a week in which our British Chambers of Commerce (BCC) colleagues released figures which reported that for 73% of businesses, labour costs represent the biggest cost burden, our QES also found this to be the case in Staffordshire, closely followed by utilities (gas, electricity).
Survey results have picked up an ongoing theme of businesses holding back on investment in plant/machinery, as well as investing in training and development of staff. There is also a significant twelve-month drop-in recruitment (from 53.4% to 36.3%.).
Results come at the end of what has been a gloomy week for the economy, with Wedgwoood announcing a 90 day pause in production. Staffordshire Chambers’ of Commerce was invited to comment on the news by BBC Radio Stoke and BBC Midlands Today. We shared our concerns about the drop in demand, which came against a backdrop of increasing costs for business.
It’s now less than ten weeks until the Chancellor of the Exchequer delivers the Autumn Budget. We’ll be writing to the Chancellor in the coming weeks, with a list of Budget ‘asks’. Top of that list will be an appeal for no further taxes on business when the Budget is delivered on 26.11.2025. We hear of many businesses grappling with the increased employer National Insurance Contributions and raising of the Minimum Living Wage but what would be in your list of Budget ‘asks’? Feel free to send me your thoughts:
