Quarterly Economic Survey
Q1 2026 Executive Summary
DOMESTIC SALES
An improved performance from the region’s manufacturers after a challenging 18 months. The service sector did not capitalise on its strong finish to 2025 with a decline of seven points. Order books look poor for both sectors.
EXPORT SALES
Manufacturers reported a second consecutive quarter of growth in overseas sales while the service sector slipped back from the previous quarter’s growth. Order books for service sector firms improved while manufacturers reported a sharp decline.
EMPLOYMENT
Hiring intent remains poor with both sectors showing an increasing unwillingness to take on new staff. For the service sector, the number of firms looking to increase their headcount is at lows not seen since the height of the pandemic.
INVESTMENT
Willingness to invest in capital projects and machinery has declined as employers battle sky-high overheads. There was a marginal improvement in the number of manufacturers looking allocate fund to upskill their staff.
BUSINESS CONFIDENCE
Both sectors saw a decline in projections around their profitability. It is a very expensive time to be running a business of any size and this is being manifested in the findings of this report.
COSTS AND CONCERNS
Taxation and labour costs remain the chief pressures on businesses, although utility costs and fuel bills are creeping upwards on the list of measures troubling 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.