The latest survey results highlight the current state of business confidence, investment intentions, and operational challenges across various sectors. The GC Business Confidence Index (GC-BCI), which measures businesses' confidence in their growth prospects, remains steady at 7.3 out of 10, unchanged from the previous quarter. Confidence levels are notably higher in Aerospace, Engineering, Construction Green-Tech, Service Activities , while Hospitality, Logistics, life sciences and consumer goods report the lowest confidence.
Sales have seen a modest increase, with 17% of businesses reporting higher sales, and 66% anticipating profit growth in the coming year, consistent with previous expectations. Investment intentions are on the rise, with 42% of firms planning to increase capital expenditure, particularly in Engineering, Manufacturing, Education and Green-Tech sectors. Workforce development is also a key focus, especially in Manufacturing DCT, and BFPS.
Despite the positive outlook, rising costs, cashflow issues, and supply chain disruptions continue to pose significant challenges. Many firms, particularly those in Creative Digital Technologies, Manufacturing, Business, Financial, and Professional Services (BFPS), and Healthcare, have
sufficient cash reserves to weather these difficulties.
Access to new domestic sales opportunities remains a top challenge, especially in Digital Technologies, Manufacturing, Professional Services, Green-tech and Health and social care. Businesses are also seeking support in areas such as innovation, business planning, marketing,
workforce development, financial advice, and environmental impact. Smaller firms face more pronounced challenges in domestic sales, product development, business model adaptation, financial management, and digital adoption.
Key Findings
GC Business Confidence Index (GC-BCI): Business confidence remains stable at 7.3 out of 10, with the highest confidence in Aerospace, Engineering, Construction Green-Tech, Service Activities , and the lowest Hospitality, Logistics, life sciences and consumer goods.
Sales and Profits: 19% of firms reported increased sales (up from 17%), and 66% expect profits to increase in the year ahead (up from 64%). Sectors with the most optimism for future sales include were Engineering, Manufacturing, Education and Green-Tech.
Investment: 42% of firms plan to increase capital expenditure (up from 41%). Sectors with the highest planned investment include Green-Tech, Manufacturing, CDT, Retail, Green Services, and Health & Social Care. Workforce development investment is particularly strong in Manufacturing DCT, and BFPS.
Cashflow Issues: 17% of firms report cashflow problems, with micro-size firms (<10 employees) being the most affected. Sectors with the highest cashflow risks include within DCT, Hospitality, Manufacturing and Health and social care.
Trade: 17% of firms currently export goods or services (down from 19%). Among these, 12% are expanding in current markets, and 13% are entering new markets, with the in DCTs Manufacturing and Health and social care sectors being the most active in overseas expansion.
Future Support Needs: Key support priorities innovation 38% (down from 39%), business planning 37% (down from 39) and Marketing 33% (down from 35%)Other important areas include workforce development (26%, down from 29%), financial advice (26%, down from 28%), and environmental impact assistance (14%, down from 16%).
Recruitment and Skills: 22% of firms are currently recruiting (down from 24%), with recruitment concentrated in DCT, Manufacturing, BFPS and Health and social care sectors. Workforce skills alignment shows that 39% of firms believe their skills meet business objectives
(unchanged), while 46% see partial alignment (up from 47%). Notable skills gaps include specialist technical skills (29%, down from 30%), advanced IT skills (12%, up from 11%), knowledge of products/services (11%, up from 14%), problem-solving (9%, down from 11%), and adapting to new materials (8%, down from 9%).
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For more information on this survey, please contact
Sabirah.Chowdhury@growthco.uk