Quarter Three Black Country Economic Survey Results Snapshot Out Today

06 Oct 2023

Published in: Black Country Chamber of Commerce News

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Quarter Three Black Country Economic Survey Results Snapshot Out Today

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Quarter Three Black Country Economic Survey Results Snapshot Out Today

• New Data Shows Over Half of Black Country Businesses Believe Turnover Will Improve Over Next Twelve Months

As the BCC’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth hits today, (6th October), findings from the Black Country Chamber’s own QES Q3 research shows firms are still struggling to recruit and are still battling with rising labour costs which are now rivalling the rise of utility prices.

Giving an up-to-date picture of the performance of the Black Country business community findings from this quarter continue to provide an insight into how firms are dealing with the ever-changing economic climate.

Key Findings

Business Resilience Inflation and interest rates are amongst the highest concern for firms across all sectors in the region at 56% and 53% respectively.

Cashflow has increased for 29% of firms while 45% say it has remained constant and 26% report a decrease in cashflow.

Overall, firms expect prices to remain constant over the next 3 months.

Business Confidence 55% of Black Country businesses believe turnover will improve over the next 12 months. 45% of Black Country businesses believe profitability will improve over the next 12 months.

Sales Trends 

Domestic and Export

26% of firms reported an increase in domestic sales while 44% reported no change and 26% reported a decrease.

8% of firms reported an increase in overseas sales up from 5% in Q2 .

22% reported no change and 16% reported a decrease.

26% of businesses saw an increase in domestic orders this quarter while 8% of businesses reported an increase in overseas orders.

Recruitment

71% of Black Country firms attempted to recruit over the past quarter. 71% of firms across the region experiences difficulties in Q3 compared with 85% in Q2 whilst 70% of firms in the region have found it difficult to recruit suitable skilled staff.

Black Country Chamber Policy Officer, Gemma Edwards said, “Although we continue to be concerned with the difficulties of recruiting suitable staff in the Black Country, and the ongoing impacts of high inflation and interest rates, it’s good to see some signs of positivity in business confidence of improving profitability and turnover in the next twelve months, and that businesses expect that they will not need to raise prices in the next few months.

“At a local level, the QES is an important source for us at the Chamber to review performance, concerns, and views of our businesses.

“We use the data when meeting with local MPs and council leaders to develop economic strategies and policies to promote and enhance growth and enterprise.

“But we can’t do this without Black Country businesses – so we strongly encourage all businesses, whether Chamber members or not, to complete our survey every quarter. It takes less than five minutes, and the information produced is invaluable.”

About The QES Q3

The Black Country Quarterly Economic Survey Snapshot

The figures in this report have been informed from quarterly economic surveys conducted by the Black Country Chamber of Commerce.

The surveying period for the Q3 2023 Quarterly Economic Survey took place between 21 August - 11 September.

As the most authoritative national business confidence survey, and the first to be published in each quarter, the results of this survey are closely watched by both HM Treasury and the Bank of England’s Monetary Policy Committee and help to inform decisions that impact upon interest rates and business policy.

The survey itself has reliably anticipated the onset of the two recessions since the early 1990s before they began and continues to act as a reliable indicator of national and regional economic performance.

The Black Country Chamber of Commerce uses the results of the survey to inform upon detailed economic performance and trends throughout the local region and beyond