Quarterly Economic Survey
Q4 2025 Executive Summary
DOMESTIC SALES
The region’s service sector posted a remarkable improvement in its sale activity, up a staggering 22 per cent. No such improvement however for manufacturers who saw a two per cent decline in UK sales, rowing back on the slight improvement it witnessed in Q3. Order books for both sectors showed strong improvements a well, hinting at a strong start for our region’s economy for 2026.
EXPORT SALES
Big improvements for the region’s exporters with sales and orders all posting a sharp recovery from a weak few months. Manufacturers showed an enormous 54 point increase in overseas sales with service firms also up by 30 points. Order books also showed a massive recovery as Yorkshire’s export prowess returns.
EMPLOYMENT
A veritable mixed bag when it comes to employing people. The service sector showed a big improvement in hiring over the last three months while manufacturers posted a more modest increase. The next three months looks less rosy, with fewer service sector firms showing willingness to take on staff, while manufacturers again posted a slight increase.
INVESTMENT
Capital expenditure showed a big recovery across both sectors, particularly in the service sector. Training investment improved in the service sector while manufacturers showed a decrease in spending.
BUSINESS CONFIDENCE
Optimism on future profitability has very much turned a corner in the region with both service sector and manufacturers expecting higher returns in the months ahead. Service sector firms led the way but manufacturers returned its best numbers in more than a year.
COSTS AND CONCERNS
Tax and wages lead the way on the principal cost concerns, but inflation and utility costs are also on the rise. The high cost of wages will not be going away any time soon with the increase in the minimum wage and the lack of relief on tax is continuing to constrain cashflow for employers.
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.