In a promising turn for the Cumbrian business landscape, business confidence has reportedly increased during the final quarter of 2023.

According to the British Chamber of Commerce’s ‘Quarterly Economic Survey’, conducted in November 2023 and encompassing over 5,000 UK businesses, there was a minor improvement in overall business conditions.

36 per cent of respondents reported increased domestic sales, up from 35 per cent in the third quarter.

However, this is not apparent across the board, with significant sectoral differences recorded.

46 per cent of consumer service businesses experienced a sales boost, while hospitality and retail sectors reported decreases of 35 per cent and 28 per cent respectively.

Another notable stat is that the amount of businesses expecting their turnover to increase over the next 12 months has risen to 56 per cent, compared to 53 per cent in the previous quarter.

Confidence in profitability has also improved, with 47 per cent of companies anticipating an increase in profits, up from 45 per cent in Q3.

However, concerns over interest rates remain significant at 39 per cent, despite this being a slight ease from previous quarters.

There are more businesses anticipating price hikes as well, marking a departure from the downward trend seen over the last two years.

47 per cent of respondents predicted an increase in prices, compared to 41 per cent in Q3, while only four per cent anticipate the opposite.

There are persistent challenges in business investment apparent, as only 24 per cent of businesses reported higher investments.

Again, there are sectoral disparities, with the hospitality sector facing a decrease in investment by 32 per cent, while transport and logistics sees a 36 per cent rise.

Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “The results show an uptick in business confidence, yet significant hurdles persist for the upcoming year.

“Concern about interest rates and inflation remains notably high, although there has been a slight reduction.

“The recruitment difficulties encountered by many businesses emphasise the need for a skills plan from Government along with an affordable immigration system.

“Businesses continue to struggle with investment as a major challenge.

“The Chancellor's decision to permanently implement full expensing in the Autumn Statement was warmly received.

“2023 demands a concerted effort to provide additional support for companies to invest.

“Politicians must stay focused on fostering economic growth and enabling businesses to prosper during the forthcoming busy election year.”