GC Bussiness Survey

The GC Business Confidence Index (GC-BCI) for June 2025 is at 7.2, slightly increased compared to previous quarter 7.1, showing slight optimism. Initially, Confidence was highest in Business Financial & Professional Services, Manufacturing and Engineering, ICTs, Construction, Hospitality, and Retail and Business Financial & Professional Services, Manufacturing and Engineering, ICTs, Construction, Hospitality, and Retail, with below average confidence was reported in Green Tech, Health & Social Care, Life Sciences Education and Logistics sectors (lower than 7.0). The average confidence was reported in Green Tech, Health & Social Care, Life Sciences Education and Logistics sectors (lower optimism about growth and capital investment).

Over 67 firms, having over six months of cash reserves which have increased compared to last quarter, concerns persist around rising costs and supply chain disruptions. Additionally, when firms have been most optimistic about growth and capital investment, they have been in Green Tech, Health Care, and ICTs are more vulnerable to cashflow pressures and market uncertainties.

Firms continue to face challenges in accessing new talent opportunities, particularly those in specialist fields. Capital Expenditure (CAPEX), and workforce development remain key priorities. The majority of firms (78%) are planning to maintain or increase their workforce over the next 12 months, with modest investment and R&D in ICTs, Life Sciences, Manufacturing and Engineering. Followed by Innovation, activity remains strong, with 34% investing in Research and 30% are increasing investment in R&D. However, expectations are lower overall compared to previous periods. Additionally, 67% of firms are planning to maintain or increase their workforce over the next 12 months, particularly in Manufacturing, Engineering and Hospitality.

It is have adapted to this business. Firms were most likely to have implemented new technologies and processes at the start and during, and workforce development, and for maintaining profitability and enterprise.

Key Findings

GC Business Confidence Index (GC-BCI): GC-BCI fell for June 2025 stands at 7.2 out of 10, showing an increase from the previous quarter's figure of 7.1. Confidence levels are above average for Business Financial & Professional Services, Manufacturing and Engineering, ICTs, Construction, Hospitality, and Retail and fell lower than average confidence was reported in Green Tech, Health & Social Care, Life Sciences, Education and Logistics.

Logistics and Profits: 34% (vs 12% of firms) reported an increase in sales, 56% (vs 67%) expect profits to increase in the year ahead, 2% (vs 0%) expect profits to decrease. The sectors most optimistic about future profitability are in BFPS, ICTs, followed by and Retail (and lower in Manufacturing & Engineering, Education, Green Tech, Health & Social Care and Construction.

Investment: 33% (vs 45%) of firms expect to increase capital expenditure in the year ahead. Construction, ICTs, Health Care, and Hospitality are most optimistic and investment expectations are lowest in Retail, Life Sciences, BFPS, Green Tech, and Manufacturing & Engineering.

Cashflow: Firms with six months+ 13% (unchanged) of firms reported cashflow concerns. Micro- sized firms (2-9 employees) were more likely to report cashflow concerns than larger firms. The sectors most likely to report cashflow concerns were Education, Logistics, Green Tech, Health & Social Care, Manufacturing, and Logistics. 2% (vs 4%) of firms reported that any major 65% of firms vs 58%) report having cash reserves of their size 7 months, with 67% of SMEs (1-9-249 employees) reporting cash reserves for this duration. Reserves were highest in the Construction, ICTs, BFPS, and Hospitality sectors and lowest in Green Tech, Health & Social Care, and Education.

Trade: 33% of firms vs 21% expect growth or services, with 13% (vs 13%) expanding into new markets, a trend particularly notable in the ICTs, Manufacturing and BFPS. Additionally, 13% (vs 21%) of firms engaged in overseas trade are looking to expand in their current markets.

Future support needs include business planning services 22%, sales & marketing 33% (vs 29%), innovation 30% unchanged, workforce development 24% (vs 24%) and financial advice 21% unchanged.

Workforce: 78% of firms are planning to maintain or increase their workforce over the next 12 months. Manufacturing are higher amongst SMEs than other size of businesses. By sector, recruitment is more active in BFPS, Retail, Education, Construction, and Hospitality. Life Sciences, ICTs and Engineering sectors were the most likely to be currently recruiting. Manufacturing and Green Tech were least likely.