No signs of business recovery in UK: BCC economic survey Q4 2022

Activity in the retail sector remains particularly weak, with the sector firmly in ‘negative territory’, with more firms reporting a decrease in sales than an increase over the past three months.

Inflationary pressures remain top business concern and there are little signs of plans to raise business investment. Four-fifths of firms cited inflation as a growing worry to their business.

Business activity in the country is not witnessing any bounce back from a significant fall in Q3 last year.

Ninety-two per cent of the over 5,600 firms surveyed are small and medium enterprises.

Profitability confidence remains at COVID-crisis levels; 34 per cent businesses believe their profits will increase over the coming year, while 36 per cent expect a decline.

The percentage of firms reporting increased domestic sales has stabilised at the low level reported in Q3. Only 33 per cent of firms experienced an increase in sales over the past three months, while a quarter reported a decrease in sales and 42 per cent reported no change.

Only 24 per cent of businesses said their cash flow increased over the last three months, while 30 per cent have seen it fall, the chamber said in a press release.

After business confidence plummeted in Q3 last year, firms continued to report a negative outlook for the future in Q4. Less than half (44 per cent) of firms expect their turnover to increase over the next 12 months, while 25 per cent expect a decrease.

Increases to business investment remain low. Only 21 per cent of firms reported a rise to plant or equipment investment over the past three months, while 57 per cent reported no change, and 22 per cent reported a fall.

The percentage of firms expecting their prices to rise over the coming months (60 per cent) remains near record highs, but is showing slight signs of easing, down from 62 per cent in Q3 last year.

Fibre2Fashion News Desk (DS)