10 Oct 2022
A survey carried out by the British Chambers of Commerce (BCC) has revealed that business confidence has 'declined significantly'.
The BCC's Quarterly Economic Survey, which polled over 5,200 businesses, found that 39% of businesses believe that their profitability will reduce over the next 12 months. The BCC said that this is the lowest level since the fourth quarter of 2020.
According to the business group, fewer firms are reporting increased sales. 32% of businesses reported reduced cashflow over the last three months, whilst 23% recorded an increase.
David Bharier, Head of Research at the BCC, said: 'This quarter's results point to a significant decline in business confidence, with a clear shift downwards in many of the key indicators we track. Every sector has seen a falling proportion of firms reporting increased domestic sales, with the retail and wholesale sector particularly affected.
'Diminishing sales coupled with soaring inflation is a toxic mix, and many firms are no longer looking to the future with optimism.'