Kent’s Quarterly Economic Survey Q1 2026
📊 Kent Business Outlook: Q1 2026 – Signs of stability, but rising pressures keep business confidence cautious
The first quarter of 2026 shows early signs of stability for Kent and Medway businesses following the challenges reported at the end of 2025. Domestic demand has strengthened, with UK sales improving from a net balance of -12 to -2, and orders rising from -18 to -3. Manufacturing continues to outperform services, but both sectors are showing areas of resilience.
Export performance has also edged upward, with export sales and orders improving to -4%, marking the fourth consecutive quarter of gradual recovery. Recruitment activity has picked up strongly, with nearly half of firms attempting to hire, and investment in training has rebounded from a net -21% to -2%. Cost pressures have eased in several key areas, though many businesses continue to face tight margins as rising wage levels and competitive pressures persist.
Confidence has improved noticeably this quarter. Turnover expectations are now firmly positive at +18%, and while profitability remains negative at -11%, this represents a significant uplift from the previous quarter. Manufacturing confidence in particular remains strong, reflecting renewed optimism across parts of the sector.
It is important to note that the majority of responses captured in this survey were gathered prior to the escalation of the conflict involving Iran. While the results point to early signs of stabilisation and improving confidence, the situation in the Middle East is likely to introduce further economic pressures and uncertainty in the months ahead. Rising energy costs, supply chain disruption and increased volatility in global markets may yet weigh on business sentiment and performance, reinforcing the need for continued resilience and close monitoring of the trading environment.
These findings reflect a business community that has shown considerable resilience in navigating a prolonged period of economic challenge. While the months ahead are likely to bring renewed uncertainty and additional pressures arising from global events, we hope that this same resilience, adaptability and determination will help Kent and Medway businesses weather this new period of turmoil. We welcome continued feedback and insight from businesses across the county, and encourage organisations to share their experiences and perspectives with our policy team at [email protected], helping to ensure the voice of business continues to be heard where it matters most.
TUDOR PRICE
Chief Executive
Kent Invicta Chamber of Commerce
