Our latest Quarterly Economic Survey (QES) results are in but what do the results tell us about levels of business confidence in Staffordshire?
Every three months, we are one of 51 Chambers across the UK Chamber network, who roll out the QES. It’s the 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 performance and outlook.
Our results are sent to the British Chambers’ of Commerce (BCC), who will develop a nationwide picture of economic outlook and that’s what gets the interest of the Bank of England. The nationwide picture will be revealed at the end of March but the Staffordshire results are in, so let’s take a look at the findings of QES, Q1. The fieldwork collection period ran from Monday 10th February, to Friday 7th March.
Our QES takes approximately 60 seconds to complete, with tick box responses to questions related to the topics of:
- Domestic sales
- Export sales
- Labour market
- Cashflow and investment
- Business confidence
Domestic sales:
There was a slight rise in the number of businesses reporting an increase in sales over the last 3 months but more businesses reported a decrease in sales during that time. There was also a drop in the number of businesses reporting a rise in the levels of advanced orders, customers or bookings and more businesses reporting a fall in future orders, customers or bookings.
Export sales
Exporters reported a noticeable dip in export sales over the last three months but conversely, more exporters reported a growth in future export sales orders.
Labour market:
Survey results reported a drop in the number of businesses who have increased their workforce in last three months. There was a slight uptick in the number of businesses who expect to grow workforce in the next three months but also a noticeable rise in the number of businesses expecting to reduce workforce in the next three months.
Cashflow and investment:
More businesses told us that levels of cashflow have dropped in the last three months. For much of 2024, there was a noticeable trend of investment in plant, machinery and capital, being paused, in anticipation of a General Election and then the Autumn Budget. So it came as a surprise for the latest QES to pick up an increase in the number of businesses planning to raise investment in these areas.
Business confidence:
The survey results picked up a drop in the number of businesses who anticipate a rise in future turnover and also those who expect turnover to remain constant. There was a rise in the number of business expecting profitability growth. QES also picked up a rise in the number of businesses who are planning to raise their prices, something we feared after the Autumn Budget announcements to increase employer NIC and Minimum Living Wage. Labour costs and overheads were listed as the main causes of pressure on business to raise prices.
It’s fair to say that QES Q1 2025, threw up a fairly mixed bag of results. It’s almost five months since the Autumn Budget and businesses are clearly still grappling with the cost implications of measures announced in the Budget. Exporters face further challenges with the global economy slipping into a trade war. Challenging times remain.
Thanks to all of you who took the time to complete a QES. Your support is greatly appreciated.
If you have any questions about the QES, please contact:
