Sales and orders are up, both within the UK and overseas; expectations of increased profitability and turnover are up, and more businesses intend to grow their workforce. Findings from East Midlands Chamber’s Q3 Quarterly Economic Survey of 2026 paint an encouraging picture but the Autumn Budget must support business growth, the Chamber has said.
More than 300 East Midlands firms took part in the Chamber’s Quarterly Economic Survey for Q3, 2026, delivered in partnership with the University of Leicester. The survey is the biggest of its kind in the region and used by leaders to help shape policy discussions locally, regionally and nationally.
Sales and orders increase over the last three months
UK – compared to Q2, 2026
- Sales up 13%
- Orders up 10%
Overseas – compared to Q2, 2026
- Sales up 7%
- Orders up 12%
Pressure to raise prices over the next three months falls
- 4 out of 10 firms (40%) anticipate raising their prices
down 6% from Q2, 2026
Majority of firms continue to operate below capacity but the number has fallen
- 7 out of 10 businesses (72%)
down 2% from Q2, 2026
Investment intention in machinery and training has increased
- 1 in 5 (17%) have revised machinery investment intention upwards
No change from Q2, 2026, but 7% fewer have revised investment intention downwards
- 1 in 5 (15%) have revised training investment intention upwards
no change from Q2, 2026 but 3% fewer have revised investment intention downwards
Challenge of finding suitable staff has eased slightly but still reported by the majority of businesses
- 6 out of 10 businesses (60%) reported difficulties in finding suitable staff
down 3% from Q2, 2026 with 3% more saying they had no difficulty
Slight lift in businesses having tried to recruit staff
- Half of businesses attempted to hire new staff
up 3% from Q2, 2026 with 3% fewer saying they did not attempt to recruit
Increase in businesses considering increasing workforce
- Nearly a quarter (23%) expect to increase their workforce in the next 3 months
Up 4% from Q2, 2026, while 3% fewer say they plan to decrease their workforce
Confidence in profitability and turnover expectation for the next 12 months increases sharply
- 4 out of 10 (43%) businesses expect profitability to improve
12% lift from Q2, 2026 while 13% fewer expected it to worsen
- 5 out of 10 (54%) expect turnover to improve
11% lift in confidence from Q2, 2026 while 11% fewer expect it to worsen
Inflation remains the number one concern of East Midlands firms but competition replaces business rates in the Top 3
- Inflation (no change from Q2, 2026)
- Corporate Taxation (no change from Q2, 2026)
- Competition (replaced business rates, which has fallen to number 4)
East Midlands Chamber Director of External Affairs Richard Blackmore said: “Almost all measures in this survey’s results give a sense of improved sentiment, when compared with those of the last few consecutive quarters, so that’s encouraging to see, especially in areas where we had the greatest concern, such as around stalled investment, hiring intention, sales and orders performance – things that directly inhibit growth.
“While still only half of the businesses surveyed have tried to recruit staff and just under a quarter plan to grow their workforce, it’s the upward shift that’s promising. That said, I would advise a degree of caution when forecasting. The Autumn Budget on 28th October will play a large part in what firms are thinking and business will be looking to that day to see supportive measures announced that incentivise investment.
“Looking at investment intention in more detail, this quarter has revealed a 3% increase in respondents saying they have tried to recruit new staff, a 7% net increase in businesses planning to grow their workforce and a 7% net increase in investment intention in machinery and 3% in training, for example. Any trend that shows increased investment intention is a positive sign and what we are looking to see but needs to be sustained over a long period of time.
“Confidence in turnover expectation increased 22% in Q3 compared with Q2, when a 12% net decrease in confidence was recorded in turnover expectations, while confidence in profitability went up 25% in Q3 from Q2, when there was an 11% net decrease in confidence of improved profitability.
“Competition has moved into the Top 3 concerns of business, swapping places with business rates, which adds to the narrative that we’re seeing a much brighter outlook among respondents. Competition cited as a concern is generally an indicator of healthy operation – in better times, it’s normal for business to keep a keen eye on competitors.
“Inflation and corporate taxation remain the greatest concerns of business, though. With inflation rising – moving further away from the Bank of England’s 2% – there is a need for the Autumn Budget to alleviate that immense cost pressure.
“The more positive direction of travel reflected in these survey findings follows a particularly challenging Q2 for business; a period characterised by considerable uncertainty, like sustained disruption to energy costs and the impact of the Middle East conflict.
“The opportunity presented by the upcoming Autumn Budget on 28th October – if seized by the Chancellor, as we are urging – to prioritise supportive measures may be giving a sense of renewed optimism. That could be short-lived, though if the Budget does not place business front and centre.
“Business needs long term assurance of stability and to be incentivised to invest to grow, so it’s essential the Chancellor ensures the Budget delivered on 28th October delivers.
“That means reducing costs for business, providing wider support with energy costs and a full root and branch review of business rates, as called for in our landmark publication The Framework for Growth, so the improved sentiment reflected in these survey findings is a constant.”
View East Midlands Chamber’s Quarterly Economic Survey findings for Q3, 2026 here.
View East Midlands Chamber’s Framework for Growth in full here.
