Kent’s Quarterly Economic Survey Q2 2026
📊 Kent Business Outlook: Q2 2026 – Resilience at Home, Challenges Abroad
The second quarter of 2026 presents a mixed picture for Kent and Medway businesses.
Domestic sales have shown encouraging signs of resilience, improving to a net balance of 0%, while recruitment activity has strengthened significantly, with 61% of businesses reporting that they have attempted to recruit during the quarter. However, employment levels and expectations remain relatively low, indicating that much of this recruitment is likely replacing existing staff rather than supporting growth.
However, these positive indicators are being offset by a deterioration in international trade. Export sales and orders have fallen sharply, particularly within the manufacturing sector, highlighting the challenges businesses face from geopolitical uncertainty, changing global trading conditions and increased overseas competition. Cashflow and investment remain under pressure, while concerns around inflation, interest rates and competition have grown compared with the previous quarter.
The impact of the Iran conflict emerged as a key theme, with nearly six in ten businesses reporting negative effects through higher fuel costs, supply chain disruption and increased operating expenses. While domestic demand has remained resilient, concerns about profitability, investment and future growth continue to grow.
Despite these challenges, businesses continue to demonstrate resilience and adaptability. We thank all businesses that contributed to this survey and encourage organisations to continue sharing their experiences, ensuring the voice of business is heard where it matters most.
TUDOR PRICE
Chief Executive
Kent Invicta Chamber of Commerce
