Kent’s Quarterly Economic Survey Q2 2022
The Kent economy continues to remain with caution, which is impacting on investment and growth. Although there are signs in some sectors that previous concerns are now starting to be alleviated, inflationary pressures, material shortages and difficulties in recruiting remain and are holding back both growth and investment.
Last quarter our hospitality and leisure sectors benefited from key national celebrations but this high will be short lived as the impact of inflationary pressures take their toll. As Utility costs continue to rise there is particular concern for this sector, which will be faced with significantly increased costs and a drop in demand as consumers tighten their belts.
Recruitment remains a key issue, since the pandemic many have stepped away from the jobs market, coupled with the change in policy following Brexit, businesses are struggling to find the staff they need to move forward. Salary costs are spiralling as businesses compete to attract new recruits, this then results in overall costs as they seek to address the differentials amongst the existing workforces. There is an opportunity here to look at investing in training the existing workforce to maximise productivity and to invest in Apprenticeships.
Whilst there has been some business investment over the past quarter, this has been weak, resulting in businesses seeking to retain cash as they are uncertain of what lies ahead.
We have all seen first hand the recent political debacle and now we face a period of paralysis awaiting a new Prime Minister to emerge and decide upon their direction of travel, at a time when the Country needs strong leadership and direction to instill confidence.
Last quarter, for a myriad of reasons, I wrote that businesses remain vulnerable, and this sentiment still applies.
Jo James OBE
Chief Executive, Kent Invicta Chamber of Commerce
