Business confidence across the county has been boosted following the results of the latest quarterly economic survey (QES).
Data from Q2 show an improvement in domestic and international sales for the service sector, while manufacturing continues to plateau, with many businesses calling for investment from the new Labour government.
With inflation easing to target, the data shows profitability is improving in the service sector while manufacturing has seen a slight improvement when it comes to employment and cashflow.
Over half of firms who responded to the survey expect their turnover to increase while fewer companies are expected to increase their process on goods. However, the hospitality sector – which is a big employer in Lancashire – is expecting to up its costs due to inflationary pressures.
While inflation remains the biggest external worry among businesses, the level of concern has fallen significantly. Around half (49%) of firms say they are more concerned about inflation than in the last quarter (58% in Q1). That’s returning to levels of concern last seen in 2021 and significantly below the 84% reported in Q2 2022, at the peak of the inflation crisis.
The QES is the largest UK private sector survey of businesses and a leading indicator of GDP growth which is watched by government policymakers, including HM Treasury and the Bank of England.
Babs Murphy, the Chamber’s chief executive, expressed cautious optimism about the slight improvement shown in the results.
She added: “There is still significant progress needed before real confidence returns to Lancashire’s business community.
“It is vitally important that the new Labour administration is prepared to listen to the Chamber and seriously take on board the issues which have been identified in the latest results which provides a crucial insight into the genuine concerns of companies throughout the county.”
