We’re not quite halfway through 2026 but the year will already go down as one of the most challenging for businesses. The year started off with the threat of a global trade war being sparked by tit for tat tariffs. At the end of February, conflict erupted in the Middle East and over the last three months, the price of fuel and overall inflation have continued to rise.
Research conducted by our British Chambers’ of Commerce (BCC) colleagues found that four in five businesses have reported an existing or expected impact from the Middle East conflict, including energy price increases, shipping disruption and rises in raw material costs. The research also found that more than a third of businesses are expecting difficulties paying their energy bills over the next year.
Amidst all the gloom, it was good to note some chinks of light from the responses in our latest Quarterly Economic Survey (QES), Q2, 2026. The QES is the UK’s longest running independent survey of business sentiment and is widely recognised by the likes of the Bank of England as a reliable measure of business confidence and outlook.
QES Q2, 2026 surveys were collected during May 2026. As usual, there was a mixed bag of feedback but some definite positives to note, included:
A slight uptick in the number of businesses reporting an increase in past export sales in last 3 months. There was also a rise in the number of businesses reporting an increase in advanced export sales.
More businesses reported plans to grow the workforce in the next three months and fewer businesses reported plans to reduce the workforce in the next quarter.
Investment in plant, machinery and equipment and also investment in staff training and development, were both up, compared to QES Q1. There was also a noticeable rise in the numbers of businesses anticipating growth in future turnover and profitability.
On the flip side, the QES also provided some negative headlines, which included a drop in the number of businesses who reported an increase in domestic sales in the last three months and a drop in the number reporting that sales remained constant.
There was also a slight drop in the number of businesses who have increased workforce in the last three months, along with a rise in the number of businesses who reported a cut in workforce numbers in the last quarter.
QES results also picked up a fall in the number of businesses who have tried to recruit in the past three months, as well as a rise in the number of businesses who have not tried to recruit during the same period.
There was a significant drop in the number of businesses reporting an increase in cashflow and more businesses reported a decrease in cashflow.
Our QES helps to build a snapshot of business confidence here in Staffordshire and the data will help to underpin our policy and lobbying work.
Staffordshire Chambers’ of Commerce would like to pass on our thanks to all who completed a QES. If you have any questions about the QES data, please feel free to get in touch:
declan.riddell@staffordshirechambers.co.uk
