BUSINESS leaders in Jersey were ‘moderately negative’ about current activity in their respective fields last month, according to a survey published this week.
The Business Tendency Survey, which is carried out by Statistics Jersey samples private sector businesses, asking the chief executive or managing director of sampled firms for their opinions on the current situation of their business.
The quarterly qualitative survey had been shelved but has now been reinstated.
The results for last month show that the all-sector business activity indicator was moderately negative, with a balance of -12 percentage points.
A positive balance – in percentage points – means that more firms reported an increase than a decrease. A negative balance means more firms reported a decrease.
Last month, the expectation for future business activity was neutral, with a balance of +9 pp. Labour and non-labour costs were reported as increasing by close to half of businesses, resulting in balances of +36 pp and +29 pp respectively; future expectations for December were similar.
Business leaders said that the main factor limiting them was staff and/or skill shortages, with over half (54%) citing this as a constraint, while 51% of ‘underloaded’ businesses – so didn’t have enough trade – said that a lack of demand was limiting their business while 41% cited staff and/or skills shortages.
Breaking it down into industry sectors, in the finance sector, current conditions were mostly neutral, but firms expected an increase in activity and profitability over the next three months.
In the non-finance sector, cost pressures were more pronounced, and firms expected continued increases in input costs and prices, and decreases in profitability.
Compared with last September, the finance sector recorded a decrease in the business activity indicator, combined with fewer firms reporting higher input costs.
Looking ahead to December, finance firms were more optimistic about the next quarter. Firms expect a recovery in activity and profitability, together with increases in costs and prices.
Compared to September 2024, the non-finance sector was less positive for business activity and input costs, with limited change in selling prices or profitability.
Looking forward to December, firmed expect continued cost pressures, little change in activity, and weaker profitability.
Asked what actions they were considering taking to address any business limitations, 48% of leaders said they would reduce operational costs, 45% said were considering hiring more staff or upskilling existing ones, and 38% said they would adjust pricing or services they offer.
