Local businesses are entering the autumn with a mixture of caution and concern, according to the latest Quarterly Economic Survey from Shropshire Chamber of Commerce.

The findings, gathered from organisations across all sectors, paint a picture of an economy still feeling the strain from rising costs, tightening cashflow and ongoing recruitment challenges.

Economic and political uncertainty remains the dominant pressure for employers, with many firms delaying investment and pausing recruitment as they await clarity from the new Chancellor’s upcoming Budget.

Although several indicators improved slightly on the previous quarter, a significant number of businesses said they were limiting growth due to cautious customer behaviour, rising operating costs and a lack of confidence in the wider economic outlook.

Concerns around inflation and taxation have risen sharply, with more than half of respondents citing both as major ‘fear factors’.

One service‑sector business said: “Everyone’s costs are affecting us through a knock‑on effect. Unless we make radical changes, we may be forced to close.”

Recruitment challenges remain widespread across the county. Despite record numbers of unemployed people nationally, Shropshire employers say they continue to struggle to fill skilled and operational roles.

Limited local transport, an ageing workforce and a shortage of young people entering technical sectors are repeatedly cited as barriers.

Domestic sales remained broadly stable during the quarter, but current and projected export sales both saw notable declines. Investment in plant and machinery rose slightly, although several businesses reported reducing training budgets due to wage pressures.

Turnover and profitability confidence saw modest improvements, yet many employers said they expected growth to remain limited over the coming year.

Liz Keirle, Shropshire Chamber’s policy and patron engagement manager, said: “Compared with the last three quarters, the survey indicates potential improvement in business confidence, cashflow, investment and capacity utilisation.

“However, growth continues to be constrained by employment costs, skills shortages and wider economic uncertainty.

“The survey suggests a picture of cautious resilience. Businesses are adapting well to challenging conditions, but many remain reluctant to commit to significant expansion until there is greater certainty around the economic and policy environment.”

The survey, which feeds directly into national policy‑making, quizzes business owners on topics including sales forecasts, international trade, recruitment, training, cashflow and confidence levels.

It is open to any business of any size in Shropshire or Telford & Wrekin. Companies do not need to be Chamber members to take part, and all comments are anonymous to encourage honest and frank feedback.

Shropshire Chamber chief executive Ruth Ross said: “This is part of the largest and most respected quarterly business intelligence survey in the country.

“The results are used by multiple Government departments, as well as the Bank of England, to understand the business climate as they take important decisions on issues such as interest rates.”