Business confidence has risen for Black Country firms

In the lead-up to the General Election 71 per cent of Black Country businesses said turnover would improve over the next 12 months, up from 59 per cent in January to March

The new data, based on surveys completed by local Chamber of Commerce member businesses from May 13 until June 6, also showed 62 per cent believed profitability will improve over the next 12 months compared to 53 per cent three months earlier.

The Black Country Chamber results were more positive than the national British Chambers of Commerce poll, which showed 58 per cent of firms expected to see their turnover increase over the next 12 months, with 51 per cent expecting profits to increase in the next year.

The Black Country Chamber of Commerce quarterly economic survey for April to June, published today, gives an up-to-date picture of the performance of the Black Country business community in the build-up to the General Election, which saw Kier Starmer lead the Labour party to power.

The results, announced at a data reveal event at the Mercure Birmingham West Hotel in West Bromwich, showed inflation remained a high concern for businesses but at a lower level than in the first quarter.

The number of businesses attempting to recruit was slightly down on the previous quarter but more respondents reported recruitment difficulties.

Other key findings included 42 per cent of firms reporting an increase in domestic sales, nine per cent saw an increase in overseas sales and 60 per cent experienced recruitment difficulties.

The results showed rising labour costs and the rise of utility prices continued to be the pressure points for businesses this quarter.

All the survey results were shared with chamber members during a briefing, which included a networking session followed by a data presentation from Gemma Edwards, Black Country Chamber of Commerce policy and impact officer, who said: “It is noticeable that there was a more positive outlook among chamber businesses as Quarter 2 came to an end. Our latest QES has shown a noticeable increase in domestic sales, a rise in investment plans and confidence levels return to those seen six months ago.

“This is really encouraging to see as we enter the second half of the year on a high note, with plenty to build upon. The survey for the next quarter will show whether there is greater confidence following the General Election result or whether businesses continue to feel the challenges around inflation and costs which we have seen over recent years.”

Chamber chief executive Sarah Moorhouse said: “The first QES since the General Election result provides the Cchamber with important data that enables us to review the performance, concerns and views of businesses in a time when the nation was poised to vote.

“The survey results are always closely watched by both HM Treasury and the Bank of England’s Monetary Policy Committee so with the country now looking forward it will help to inform decisions that impact upon interest rates and business policy.

“Black Country businesses are resilient in the face of adversity and the latest survey shows that even though rising labour costs and utility prices offered significant concerns, firms were looking to the year ahead with greater optimism than the previous three months.”