Summary


* The report uses data from the Quarterly Economic Survey carried out from 17/08/2026 and 04/09/2026 in the third quarter (Q3) of 2026.

Total respondents: 316

  • Businesses classified as Manufacturers: 38.0%
  • Businesses classified as Service sector businesses: 62.0%

Out of 316 businesses, 45.0% were active in international markets.

Business Size

  • Micro Businesses: 45.0%
  • Small Businesses: 31.0%
  • Medium Businesses: 18.0%
  • Large Businesses: 6.0%

Wider Economic Context


  • Unemployment rate (Jan’26-Mar’26): Decreased from 5.9% to 5.4% compared to the previous three-month period.
  • Youth (16-17 years) unemployment: Reduced from 43.7% to 31.8% over same time period leading to some decline.
  • Job Vacancies (Feb’25 – Apr’26): The vacancies were at the lowest since Feb’21 to Apr’21. The total estimated vacancies were down by 28,000 compared to level in Nov’25 to Jan’26, decreasing in 11 out of 18 sectors. The largest decrease was in wholesale and retail trade, repair of motor vehicles and motor cycles.
  • Bank of England’s latest Monetary Policy report (Feb’26): Bank has maintained the rate of 3.75%. The conflict in the Middle East has changed outlook for inflation in the UK. Inflation has increased to 3.3% in Apr’26 and is likely to be higher in the year as the effects of higher energy prices pass through. Continued weakness in demand and the labour market is likely to have impacts as well.
  • Exchange rates (Jun’26): GBP stands at €1.15 – an increase by €0.016 since Jan’26.
  • International Trade (Q4 2025): Exports valuing £7.89 billion. An increase of £44 million from Q3 2025.

Region at a Glance


*Net Value = Increase - Decrease

🟢 Positive; 🟡 No change; 🔴 Negative

State of Economy Index


Compared to previous quarter, the current quarter saw steep fall in the state of economy index. The value for third quarter of 2026 is 80.

Results


UK Sales


UK Orders


Overseas Sales


Overseas Orders


Past Employment


Future Employment


Recruitment Attempted


Recruitment Problems Faced


Recruitment Difficulties


Positions Filled


Cash Flow


Operating Capacity


Future Prices


Price Rise Pressures


Investment in Machinery


Investment in Training


Confidence Turnover


Confidence Profitability


Business Concerns


Business or economic factors affecting business

Positive sentiment count 😊 : 32

Negative sentiment count 😠 : 38

Neutral sentiment count 😐 : 14

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