Domestic activity remains strong despite inflation pressures, shows local economic survey

The Lincolnshire Chamber of Commerce’s Quarterly Economic Survey – part of the UK’s largest independent business survey and a leading indicator of UK GDP growth – has found that domestic conditions in terms of sales and orders have maintained at strong levels despite the rising inflation and ongoing cost pressures.

Running from 16^th February to the 8^th March, the fieldwork period was against a backdrop of increased GDP, continued rising inflation and a fall in national unemployment.

UK market figures have maintained since the last quarter, with sales increasing slightly from +29 to +30 and orders moving further into positive territory increasing from +11 to +25.

Overseas sales and orders, however, have weakened, which is reflected in documentation figures recorded by the Chamber International Trade team, with sales moving from -13 to -22 and orders decreasing even further from -7 to -44.

Past recruitment intentions have remained at +18 this quarter, whilst future recruitment plans have dropped from +32 to + 18, though remaining positive.

Cllr Colin Davie, executive councillor for economy at Lincolnshire County Council, “It’s a testament to businesses in Greater Lincolnshire that activity remains strong despite recruitment and supply challenges.

“The global effects of war and Covid-19 are leading to knock on effects in prices and availability of raw materials and these costs are already being passed on to consumers, with further price rises now clearly on the horizon. An increase in domestic trade reflects many of these challenges and as consumers, a focus on spending money in our own economy, and especially our county, will be particularly beneficial.”

Full briefing can be seen here.