GC Business Survey

Latest report: 02 January 2026

The full GC Situation Report contains detailed data on the economy, and results of the GC Survey and Business Confidence Index. It also provides headline data for local authorities in Greater Manchester.

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GC SITUATION REPORT AND BUSINESS SURVEY RESULTS

UK Economic Performance

The UK economy is closing out 2025 with modest and uneven momentum, as GDP growth slowed to just 0.1% in Q3 and contracted slightly in October amid weakness across services, production and construction. Consumer spending remains cautious, with mixed retail performance reflecting ongoing cost-of-living pressures, while business sentiment has improved only marginally despite firmer PMI readings. Inflation has eased but remains above target, with food prices continuing to rise and wage growth staying relatively firm even as unemployment has climbed to around 5%, signalling a cooling labour market. Construction continues to be a significant drag on growth, with prolonged contraction particularly in residential and civil
engineering, although some firms report tentative improvement in outlooks as borrowing cost expectations stabilise. Overall, pockets of resilience in services and manufacturing are being offset by persistent cost pressures, weak investment intentions and fragile confidence, keeping the broader economic outlook subdued.

Survey Summary

Business sentiment across Greater Manchester remains resilient, with the GC Confidence Index holding steady at 7.2. Confidence is strongest in Hospitality, Construction, Manufacturing and Digital/Tech, while Engineering, Green Tech, Healthcare and BFPS report weaker outlooks. Profit expectations have strengthened and around a third of firms plan to increase investment, though
rising costs, cashflow pressures and recruitment difficulties remain key concerns. Just over half of businesses hold cash reserves exceeding six months, pointing to some financial resilience, albeit with greater vulnerability among smaller firms.

Labour market conditions are mixed. Recruitment activity has edged up, particularly in BFPS, Construction, Education, Manufacturing and Retail, but skills shortages persist. Only a minority of firms report that workforce skills fully meet business needs, with gaps most evident in specialist technical, advanced IT and sales skills. AI adoption continues to expand, with many
firms using it to support analytics, marketing, administration and automation.

Innovation remains an important focus. Recent activity has centred on new or improved services, R&D and new business practices, while future plans prioritise workforce development, continued R&D investment and digital transformation to support longer-term productivity and resilience.

Key Findings

GC Business Confidence Index (GC-BCI): Business confidence stood at 7.2 (unchanged); confidence higher in Hospitality, Construction, Manufacturing and Digital/Tech, while Engineering, Green Tech, Healthcare and BFPS report weaker outlooks.

Investment: 31% (vs 32%) of firms expect to increase capital expenditure in the year ahead; 35% (vs 31%) of firms plan to increase workforce development investment. Sectors more likely to report an increase in WFD are BFPS, Construction, Education, Retail, Manufacturing, Retail and Hospitality.

Cashflow Issues: 16% (unchanged) of firms reported cashflow problems and higher risk reported in DCTs, Green Tech and Service activities.

Trade: 25% of firms (vs 24%) export goods/services, with 17% (unchanged) expanding into new markets.

Future Support Needs: sales & marketing 33% (vs 31%), workforce skills 32% (vs 30%), business planning 31% (vs 30%), innovation 31% (unchanged), and financial advice 24% (unchanged).

Recruitment and Skills: 24% of firms recruiting; higher among SMEs; most active in BFPS, Construction, Education, Manufacturing and Retail.