Confidence falls among Black Country firms following budget, new data shows

An economic survey by the Black Country Chamber of Commerce, the first 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 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.

The other key Black Country findings for Quarter 4 also show that 42 per cent of firms reported no change in domestic sales, while 47 per cent of Black Country firms attempted to recruit over the past quarter, down from 57 per cent in Quarter 3.    

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.”