Suffolk businesses stuck in economic 'holding pattern'

Why it matters: The Suffolk Chamber of Commerce's Quarterly Economic Survey (QES) for April to June 2026 shows trading conditions at their harshest for some time, with the impact of the Iran War clearly visible in rising concerns over price hikes and supply chains.

The big picture: Any quarter-on-quarter gains for some service firms were offset by similar declines among manufacturers – a reversal of the trend seen in the previous three months. Most of the measures tracked by the survey remain in negative territory, meaning more businesses reported worsening conditions than improving ones.

By the numbers: Manufacturers reported declines across most measures:

• Domestic sales down 24 percentage points to -20%
• Domestic orders down 21 percentage points to -29%
• Export sales down 44 percentage points to -50%
• Export orders down 44 percentage points to -56%

Confidence in improving profitability fell 36 percentage points to -39%, while turnover confidence fell 32 percentage points to -14%. Investment in plant and machinery fell 14 percentage points. There were upticks in training investment (up 15 percentage points to +4%) and cash flow – up 12 percentage points, though still at -18%.

Service companies fared somewhat better, with quarter-on-quarter improvements in domestic orders (up six percentage points), cash flow (up nine percentage points), investment in plant and machinery (up 12 percentage points), training investment (up 13 percentage points), and confidence in profitability (up 13 percentage points) and turnover (up nine percentage points). However, with the exception of turnover, all these measures remain in negative territory.

Inflation is a growing worry, cited by 43% of respondents, with 64% of manufacturers and 49% of service companies reporting pressure to raise their own prices. Taxation remains the single biggest concern, mentioned by nearly 70% of respondents.

What they're saying: Businesses shared how the challenges are playing out day to day.

A van rental company said: "We are taking risks this year to grow. But these are mainly linked to Europe, as there is more confidence. We have considered moving the operation to Europe."

A software development company said a "200% increase in a key supplier's prices a year ago is still making life very difficult for us, severely limiting plans for new investment in the business."

A consultant said: "Due to the conflict in the Middle East and the requirement to travel on business the availability of fuel is a concern." A caterer added: "Food inflation and wages have outpriced what we can viably increase prices by."

A machinery manufacturer warned: "The effect on future fertiliser availability due to the war in Iran could be incredibly significant for the agriculture industry."

Paul Simon, Suffolk Chamber's head of public affairs, said: "Suffolk is full of innovative and hard-working business owners and managers. There is much that is positive happening in the county, but we should not ignore the entrenched challenges that do exist.

"Whilst international events are largely outside the influence of British state institutions, there is more that Government and councils can do to boost business confidence."

He called for the corporate tax increases in the 2024 Budget to be rolled back, and for more public sector contracts in Suffolk to be awarded to local small and medium-sized enterprises.

For context: The previous QES, covering January to March 2026, was gathered before the full effects of recent Government tax changes had begun to filter through, and warned the picture for Suffolk businesses could get worse before it got better. That survey found businesses in a similarly difficult position, with Doug Field, chair of Suffolk Chamber's Economy Group, saying at the time: "There's real resilience among Suffolk's businesses, but that doesn't mean the situation isn't serious. Too many firms are treading water rather than moving forward."

The bottom line: Three months on from warnings that tax changes could hit Suffolk businesses hard, the latest survey suggests the county's economy remains stuck in a holding pattern – with the added pressure of global events now weighing on price and supply chain concerns.

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