New data from the Cambridgeshire Chamber of Commerce reveals worsening cost pressures, declining export performance and continued economic stagnation across the region.
Businesses across Cambridgeshire, Peterborough and Stamford are facing mounting pressures as rising costs and weakening demand continue to limit growth, according to the latest Quarterly Economic Survey (Q1 2026) from the Cambridgeshire Chamber of Commerce.
The findings show that economic conditions have tightened further since the end of 2025, with key indicators pointing to a continued period of stagnation for many firms.
International trade remains a particular concern, with 41% of businesses reporting a decrease in overseas sales, up significantly from 30% in the previous quarter. Domestic performance remains subdued, with just 25% of firms reporting increased UK sales and only modest growth in orders.
At the same time, businesses are facing intensifying cost pressures. Labour costs continue to be the most significant challenge, rising from 80% in Q4 to 84% in Q1. This is notably higher than the national picture, where 73% of firms cite labour costs as a concern, highlighting the disproportionate impact on businesses in our region. Concerns around utilities have increased sharply from 48% to 62%, while fuel costs have risen from 23% to 32%, placing further strain on operating margins.
Despite some slight easing, capacity constraints remain widespread, with 62% of businesses operating below full capacity. Forward-looking indicators also reflect ongoing caution, as fewer firms expect turnover to improve and many remain uncertain about profitability in the months ahead.
Labour market pressures persist, with 56% of businesses attempting to recruit and the majority continuing to face difficulties, particularly in skilled and professional roles. Meanwhile, signs of reduced investment are emerging, with fewer businesses engaging in training and stable cashflow levels declining.
Charlotte Horobin, CEO of Cambridgeshire Chamber of Commerce, said:
“The message from businesses is clear. Costs are rising, demand is falling, and confidence is fragile. Government must act now to ease the burden on firms and unlock growth before these pressures become further entrenched.”
In response to these ongoing challenges, the Chamber is bringing businesses together at its upcoming CambsB2B North event on 11 June at Holiday Inn Peterborough West, where expert speakers and industry leaders will share practical insights and strategies to help organisations navigate rising costs, workforce challenges and uncertain market conditions.
The event will provide a platform for collaboration, knowledge-sharing and direct engagement with the issues highlighted in the QES, supporting businesses to respond, adapt and plan for the months ahead.
The Chamber continues to urge policymakers to take targeted action to reduce cost pressures, improve confidence and create the conditions needed for sustainable business growth.
Read the full Cambridgeshire, Peterborough and Stamford QES report here.