Q1 economic survey results are in, and your voice is needed for Q2

As we move deeper into 2025, businesses across the South West continue to navigate a complex economic landscape. One shaped by shifting market conditions, persistent recruitment challenges, and cautious optimism amid broader uncertainty.  

At Business West, we believe the best way to understand these challenges and advocate for meaningful solutions is by listening to you, the businesses driving our regional economy. That’s why we’re excited to share the findings from our Q1 2025 Quarterly Economic Survey (QES), and to invite you to shape the next wave of insights by participating in Q2.

Q1 2025: Key Findings at a Glance  

The latest survey results paint a nuanced picture of business performance, confidence, and concerns. Here’s what stood out:  

Domestic and International Sales Remain Under Pressure  

• Domestic sales growth: 21%
• Domestic sales decline: 35%
• International sales growth: 12%
• International sales decline: 19%

Domestic sales remained in the negative territory, with 21% of businesses reporting growth, while 35% saw declines. International sales followed a similar pattern, with only 12% reporting increases and 19% experiencing decreases. These figures suggest that demand, both domestically and internationally, remains fragile, likely influenced by broader economic uncertainty.  

Recruitment Challenges Persist

• Businesses seeking new staff: 38%
• Struggling to find suitable candidates: 63% (especially for skilled/managerial roles)

While 38% of businesses sought new staff in Q1, a striking 63% struggled to find suitable candidates—particularly for skilled and managerial roles. This skills gap continues to hinder growth and operational efficiency across sectors.  

Business Confidence: A Tale of Two Perspectives

• Optimistic about own business prospects: 45%
• Negative outlook on UK economy (next 12 months): 69%

45% of respondents remained optimistic about their own business prospects, which is a consistent figure compared to the previous quarter. On the other hand, confidence in the UK economy was significantly lower, with only 31% expressing a positive outlook for the next 12 months. This divergence indicates that while many companies are successfully adapting to the current circumstances, concerns about the broader economic climate continue to dominate the minds of business leaders.  

Top Concerns: Economic Conditions and Uncertainty

General economic conditions: 76%
Business uncertainty: 70%
Taxation concerns: 53%
Other concerns: Inflation, competition, interest rates

General economic conditions were cited as a major challenge by 76% of respondents. Business uncertainty was a concern for 70%, while taxation was a pressing issue for 53%. Other notable concerns included inflation, competition, and interest rates.  

Profitability and Pricing Trends  

• Expect improved profitability: 30%
• Expect stability in profitability: 28%
• Expect profitability declines: 42%
• Prices held steady (Q1): 54%
• Prices increased (Q1): 40%
• Prices decreased (Q1): 6%

In the coming months, 30% of businesses expect improved profitability, while 28% anticipate stability and 42% foresee declines. Over half (54%) held prices steady in Q1, but 40% reported increases, indicating that cost pressures persist for many businesses.  

Why Your Participation in Q2 Matters

These insights don’t just reflect numbers, they reflect real experiences from businesses like yours. And with the Q2 2025 survey now open, we need your help to ensure the next set of data is just as impactful.  

Here’s why taking part is so important:  

See How Businesses Are Really Doing, With Real Data - Surveys and headlines often generalize, but the QES provides granular, localized insights straight from the business community. By participating, you’ll see how your performance compares to peers and gain actionable intelligence.  

Track Trends Across the Years - Is recruitment improving? Are sales rebounding? Are confidence levels shifting? The QES allows us to spot long-term trends, helping businesses and policymakers alike make informed decisions.  

Advocate for the Policy Changes You Need - Your responses directly inform our lobbying efforts with central government, regional leaders, and institutions like the Bank of England. Past surveys have influenced decisions on tax relief, skills funding, and infrastructure investment. Your voice can drive change.  

Support Business West’s Work on Your Behalf - We leverage this data to advocate for improved business support in Westminster, to help us shape regional economic strategies, and to secure media coverage that amplifies your challenges. Without your input, our advocacy lacks the weight of evidence.  

A Thank You to Past Participants  

To every business that has taken part in previous surveys: thank you. Your contributions have helped us:  

• Shape local investment priorities.  
• Highlight recruitment struggles in national media.  
• Lobby for more support for businesses like yours.

You can explore past survey findings in our repository of previous responses, showcasing how collective input leads to real-world impact.  

How to Take Part in Q2  

The survey takes just 5-10 minutes and is confidential. Whether you’re a small business or a large employer, your perspective matters.  

Deadline: June 9th 2025

You Can’t Change What You Don’t Measure  

Economic shifts aren’t just headlines, they affect your cash flow, your team, and your growth plans. By participating in the QES, you’re not just sharing data; you’re helping build a stronger, more responsive business environment for the South West.  
So, will you add your voice? Click below to take the survey—and let’s shape the next chapter together.