Business confidence among Black Country firms fell in fourth quarter – new survey

09 Jan 2025

Published in: Black Country Chamber of Commerce News

Confidence among Black Country firms has fallen while taxation is the biggest concern for businesses, the new economic survey by the region’s Chamber of Commerce has shown.

The first poll of sentiment among Black Country Chamber of Commerce businesses since October’s Budget showed 48 per cent of firms are predicting an improvement in turnover over the next 12 months, down from 60 per cent in Quarter 3.

The new data, based on surveys completed by local businesses between November 11 and December 9, also found 39 per cent believed profitability will improve over the next 12 months, compared with 50 per cent three months earlier.

The Black Country Chamber of Commerce Quarterly Economic Survey (QES) for Quarter 4, published today, gives an up-to-date picture of the performance of the Black Country business community.

The results, announced at the Chamber's Quarterly Economic Survey Data Reveal event at Wolverhampton Science Park, showed taxation is now the top concern for firms across all sectors in the region, with 64 per cent of businesses citing it as their biggest worry, nearly twice as many as the next worry of inflation (33 per cent).

The other key Black Country findings for Quarter 4 include:

  • 42 per cent of firms reported no change in domestic sales, the largest group in the Quarter 4 findings, up from 40 per cent in Quarter 3.
  • 47 per cent of Black Country firms attempted to recruit over the past quarter, down from 57 per cent in Quarter 3.

Until Quarter 4, Black Country business confidence levels were tracked by the QES throughout 2024 as being above national levels recorded in the quarterly British Chambers of Commerce survey.

The Quarter 4 local confidence levels are in line with the recent British Chambers survey, which found 49 per cent of firms expected their turnover to increase in the next 12 months, down from 56 per cent in Quarter 3. Nationally 40 per cent of firms expect profits to increase over the next year, down from 48 per cent three months earlier.

All the survey results were shared with Chamber members during a briefing, which included a networking session followed by a data presentation from Jan Jennings, Black Country Chamber of Commerce public affairs advisor.

Chamber CEO Sarah Moorhouse said: “The latest Black Country Chamber of Commerce Quarterly Economic Survey shows that local companies are reassessing their plans following the recent Budget, just as businesses are doing nationally, with taxation their primary concern.

“Businesses here have previously been more optimistic than British businesses overall, which highlights their resilience. Recent Black Country surveys showed confidence remained consistently high until now.

“Where there are challenges Black Country businesses have a proud heritage of capitalising upon the opportunities, so we will support our members and the wider economy to be innovative and to embrace new skills and technology.

“Our recent surveys have shown that businesses in the region have a brighter outlook and a higher confidence than the national average so we will keep working to ensure their voices are heard by those in government and decision makers.

“The surveys are closely monitored by both HM Treasury and the Bank of England’s Monetary Policy Committee, so the results inform decisions that impact upon interest rates and business policy.

“We continue to encourage all businesses, whether Chamber members or not, to complete our survey every quarter as the information produced is highly valued.”

The survey event included a presentation by guest speaker Professor Zeeshan Pervez from the University of Wolverhampton on the theme of AI and cybersecurity.

Representatives from Chamber member businesses JJX Logistics, 1Up Solutions, Vantage 365, Blisstech Solutions and MoRServ also took part in a panel discussion on the topic and shared their insights into how advancements in AI and cybersecurity are being adopted by businesses.

Photo caption: From back left: Matt Weston of Vantage 365, Chris Dowen of MoRServ, Matt Yarranton of Blisstech Solutions, Sarah Moorhouse and Jan Jennings of Black Country Chamber of Commerce, Anthony Kinnear of 1UP Solutions, Prof Zeeshan Pervez from the University of Wolverhampton and Edward Martin of JJX Logistics

Share on Facebook Share on Twitter Share on Linked In

Comments

Post A Comment

You must be logged in to post a comment. Please click here to login.