Humber businesses are continuing to tackle cost increases as they brace themselves for the next Budget, a new survey has shown.
The Hull & Humber Chamber of Commerce has issued its latest quarterly survey, revealing how its members are dealing with a mixed picture tainted by the difficulties of continuing uncertainty, falling turnover and rising prices. The third quarter survey results 鈥 set against a backdrop of stubborn inflation which remained at 3.8% in August and an interest rate held at 4.0% 鈥 showed home sales and orders were down slightly.
Home sales dropped by one point to 鈥1, and home orders dropping seven points into the red at 鈥32. Meanwhile export sales and orders jumped by four points but stayed in negative territory at 鈥33, with export orders rising by the same figure to 鈥34.
Firms reported that cashflow improved slightly, rising by seven points to -26, and more firms were investing in plant and machinery, with that figure improving by 30 points to 鈥37. Prices were expected to rise in the next three months as raw material costs are on the up, and although turnover expectations were down by 11 points, profit expectations improved slight by seven points to 鈥18.
Fewer firms tried to recruit in the quarter with the figure dropping from 50 to 44%. And those who attempted to recruit encountered difficulties in finding skilled manual workers, with 70% of respondents highlighting the issue, while clerical and unskilled or semi-skilled employees were also more difficult to source.
However, management roles were easier to fill, with 25% fewer firms reporting difficulties. There was only a very slight increase in the number of firms trying to recruit staff for permanent positions.
External concerns remained a key feature in the quarter, with inflation becoming an increasing concern, highlighted by 37% more businesses. Business rates were also cited as a concern, as were exchange rates and interest rates. Price pressures included raw material costs, with 3% more firms saying they were concerned about rising prices, and the cost of finance and access to finance also proving challenging.
Chamber chief executive Dr Ian Kelly said: 鈥淥ur survey results for the third quarter of 2025 show that businesses in the Humber region are still dealing with the fall-out of National Insurance tax hikes and the rise in the minimum wage rate.
鈥淣ow, however, there is another concern looming in the shape of the Autumn Budget in November. It is clear from our survey results that businesses are bracing themselves for more bad news and battening down the hatches.
鈥淗ome sales and orders are both down this quarter, as are turnover and profit expectations and fewer firms are trying to recruit new staff. At the same time were are seeing raw material costs going up and the inevitable increases in prices, as concerns continue around interest rates and inflation.
鈥淏usiness now needs a period of stability in the Humber, and not another raid from the Chancellor.鈥
