The Quarterly Economic Survey is the UK’s most important independent business survey.
Feedback from the Quarter 2 2026 Quarterly Economic Survey highlights increasing pressure from higher wages, Employer National Insurance contributions, energy, fuel and raw material costs, while difficulties recruiting skilled workers remain a significant concern across many sectors. Many firms are reluctant to pass rising costs on to customers, despite mounting pressure on profitability, and are calling for greater support to reduce employment costs, strengthen skills and apprenticeship provision, and encourage investment, innovation and digital transformation.
The survey findings point to a more cautious outlook among businesses. Just 17% of firms said they plan to increase investment in plant, machinery or equipment over the next three months, down from 21% in Q1, while 26% expect to reduce investment. Business confidence has also weakened, with 44% of respondents expecting turnover to improve over the next 12 months, compared with 49% in the previous quarter, and 23% anticipating a decline. Inflation concerns have risen sharply, with 66% of businesses identifying it as a key issue, up from 50% in Q1, while 70% continue to cite labour costs as their biggest source of price pressure. Retail and hospitality businesses remain among the most affected sectors, with only 31% of hospitality firms and 36% of retailers expecting turnover growth over the coming year.
The Quarterly Economic Survey is one of the most influential business surveys in the UK, providing real-time insight into the challenges and opportunities facing businesses of all sizes and sectors. By taking part, businesses help shape the evidence used by Chambers of Commerce to influence government policy, advocate for targeted business support and highlight the issues that matter most to employers. The survey’s findings are regularly used by policymakers, the Bank of England and national and regional stakeholders to inform economic decision-making, making every response an important contribution to ensuring the voice of business is heard.
Thank you to all those who responded to the survey.