Quarterly Economic Survey Q2: Marked improvement in business conditions but inflation concerns hit record highs
The British Chambers of Commerce’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has found a marked improvement in business conditions in Q2 as covid restrictions eased.
The survey of over 5,800 firms showed that some key indicators, such as domestic sales and business confidence, displayed significant rises, as more firms reported improved conditions, with some indicators returning to pre-pandemic levels as Covid restrictions have eased. However, it also showed steep rises in the number of firms, particularly manufacturers, expecting to raise prices, and in businesses citing inflation as a cause of concern.
Key findings include:
- Balance of firms reporting increased domestic sales at six-year high for manufacturers and at three-year high for services firms
- Balance of firms expecting their turnover to increase at six-year high
- Balance of manufacturers expecting to increase their prices at highest level in the history of the QES dataset starting in 1989