Quarterly Economic Survey
Q2 2026 Executive Summary
DOMESTIC SALES
An encouraging picture with both sectors having picked up in terms of the UK sales performance. The service sector improved to positive territory, albeit with quite modest growth. Manufacturing was also positive, recovering from previous negative performances. Orders were looking positive too, suggesting a stabilisation in demand. For manufacturing however, there is still a long way to go to reverse a sharp period of decline.
EXPORT SALES
Yorkshire’s export markets remain weak, particularly for manufacturing. The service sector remains flat with limited growth while manufacturing witnessed a decline overseas sales. Order books were also looking poor across both sectors.
EMPLOYMENT
The negative trends seen in the labour markets is showing tentative signs of improvement. The last quarter continued to show flat demand for taking on new staff, mirroring previous quarters. However, the next quarter is looking more positive for those seeking new roles. The service sector shows an uptick in hiring intent while manufacturers remain more cautious.
INVESTMENT
Investment plans are oscillating between cautious to resilient. On capital investment there was modest growth for the service sector with manufacturers also showing an uptick. Training investment seems to be an ongoing commitment for both sectors, particularly among service sector employers.
BUSINESS CONFIDENCE
There is a clear dividing line between the two sectors, with service sector employers showing a strong improvement on expected profits, while manufacturers continue to showcase signs of being under pressure. On turnover. Service firms are driving overall growth whilst manufacturing remains subdued.
COSTS AND CONCERNS
For the first time in more than a year inflation has overtaken taxation as the chief cost pressure facing businesses. Cost pressures are increasingly becoming broad based across multiple factors as the disruption from the war in Iran continues to impact energy costs. Raw materials, labour costs, energy and transport are all areas for concern.
The Quarterly Economic Survey is one of the longest running and widest scoping business surveys in the UK. It provides a useful picture of the state of business in the UK at a national, regional and local level.
Nationally, tens of thousands of businesses answer the survey, and this is the opportunity to be part of that.
We ask a mix of standing questions which give a perspective of how trade, labour, business confidence and other metrics have fluctuated. We also ask specific questions each quarter on hot topics that members are interested in, including AI, the impact of global conflicts and the Covid-19 pandemic.
From there, we present this data to local councils, combined authorities and it forms part of the picture that goes to national government with the wider British Chambers of Commerce.
On this page, you will find links to previous Quarterly Economic Surveys, to see the details of what businesses tell us.
