Business confidence drops for Black Country firms
Business confidence among Black Country firms fell in the first three months of the year.
The latest economic survey by the region’s chamber of commerce found that 59 per cent of Black Country businesses believe turnover will improve over the next 12 months, down from 71 per cent in the last quarter of 2023.
The new data, based on surveys completed by chamber member businesses, also showed 53 per cent believe profitability will improve over the next 12 months compared to 58 per cent three months earlier.
The Black Country Chamber of Commerce Quarterly Economic Survey gives an up-to-date picture of the performance of the regional business community.
The results were announced at a reveal event at the Black Country and Marches Institute of Technology in Dudley.
They also showed that rising labour costs and rising utility prices are the biggest pressure points for businesses.
Also 27 per cent of firms reported an increase in domestic sales, while 41 per cent reported no change and 27 per cent reported a decrease.
The increase in overseas sales reported by 12 per cent of firms compared to six per cent in October to December, while 18 per cent reported no change and 11 per cent reported a decrease.
64 per cent attempted to recruit over the past quarter, up from 57 per cent and 54 per cent experienced recruitment difficulties, down from 62 per cent .
Gemma Edwards, chamber policy, impact and public affairs officer, said: “While business confidence has fallen and there is a slight downward trend in domestic sales and orders from the last quarter of 2023, it was encouraging to see that more businesses looked to recruit in the first quarter of this year.
“Fewer Black Country firms reported difficulties hiring staff, although recruitment struggles continue, particularly for organisations looking to hire skilled engineers and technicians. Businesses are being cautious, with three quarters of survey respondents neither increasing or decreasing their investment in training or machinery and equipment.”
Chamber chief executive Sarah Moorhouse said: “The QES provides the chamber with important data that enables us to review the performance, concerns and views of businesses. The survey results 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 latest survey shows that rising labour costs, utility prices and inflation continue to be significant concerns for businesses, but it is positive to see that, overall, firms expect prices to remain constant over the next three months.”
The survey event also included a presentation by Andy Hemming, senior partner at ActionCoach, on the theme of business succession planning.
