Sales expectations were at record lows across Kent in the second quarter of the year, prompting fears the economy could be headed for a slowdown.

Only 49% of bosses anticipated an increase in turnover in the next year, according to the quarterly economic survey by Kent Invicta Chamber of Commerce.

The figure is at its lowest level since 2011.

Meanwhile, a quarter of bosses believe sales will fall over the next 12 months, which is the worst on record for Kent.

Some bosses put the weakening confidence down to uncertainty over the outcome of the EU negotiations.

Becky Simms, managing director of Maidstone-based digital marketing agency Reflect Digital, said: “We have noticed a change in some businesses’ behaviour in the wake of Brexit.

“The uncertainty is causing some to tighten their belts or to hold back on growth aspirations.

“I would imagine the 49% expecting growth are concentrating on refining their marketing with clear tracking to ensure they are getting the results required to keep pushing forward in these uncertain economic times.”

Profit expectations were also poor across Kent.

Just 44% of 110 respondents to the survey think profits will improve over the next year, just a 2% improvement on the third quarter of 2016 immediately after the Brexit vote.

And 30% believe their bottom line will worsen, with expectations at their worst since the first quarter of 2013.

David Ward, chief executive of Strood-based Ward Security, said: “Uncertainty underpins the UK at the moment, both economically and socially, and Brexit is clearly at the heart of this.

“While those in favour of leaving the EU continue to speak of a glowing future post-Brexit, the economy is not convinced.

“The challenge and indeed the responsibility for all businesses at this time is to ensure they are operating as efficiently as possible to avoid the need for any contraction of the business if a worst-case scenario occurs.

“Efficiencies in processes is preferable to redundancy as that simply helps to further depress the economy.

“It’s also the responsibility of service suppliers to let businesses know the ways in which they can make their service more efficient, and this is something we have been proactive in advising our clients of for some time.”

Kent’s exporters were polarised in the second quarter of the year after double the number of firms reported both improved and declining sales.

While a near record 33% said overseas turnover had increased – up from 17% – the proportion that said international revenues had decreased fell to 24%, down from 12% in the first three months of the year.

The pattern was repeated for overseas order books, although it was more severe for those reporting decreases, up 17 points to 29%.

The numbers who said international orders had improved grew by seven points to 24%, according to the quarterly economic survey carried out by Kent Invicta Chamber of Commerce.

The value of the pound is down 15% against the euro since the EU referendum in June 2016, making British goods cheaper for foreign buyers.

However, uncertainty over future trade arrangements with the Europe has prompted some continental buyers to search for products elsewhere.

Kent bosses put a positive spin on the results.

Jo James, chief executive of Kent Invicta Chamber of Commerce, said: “The latest results point to a continued pick-up in export activity for both service sector firms and manufacturers.

“The improving growth outlook for some of the UK’s key international markets and the weaker sterling have helped improve trading conditions for UK exporters.”

Becky Simms, managing director of Maidstone-based digital marketing agency Reflect Digital, said: “The relationships, price points and quality of goods exporters have are fundamental to their success.

“The euro’s strength against the pound will have offered an opportunity for growth in exports to Europe. Kent has a very varied export trade, ranging from more artisan products to well established manufacturing products.

“There is a definite growth market at present for artisan, home-grown products such as the success Chapel Down is seeing with their English wine.”

UK sales increased for 36% of businesses in the second quarter – its highest level for a year.

Domestic revenues were down for 22% of firms.

Meanwhile, growing numbers of businesses reported a fall in their domestic order book.

The proportion that said UK orders had decreased was 27%, the worst figure since 2013.

The proportion of companies with improved orders was also down seven points to 28%.

The 44% enjoying a constant level of orders is the lowest for more than two years.

The county’s employment market slowed after a surge in firms planning to hire staff in the first three months of the year.

Those expecting to increase the number of employees fell by 12 points in the second quarter to a more usual level of 27%, according to a survey of 110 bosses by Kent Invicta Chamber of Commerce.

The first quarter of 2017 recorded the highest proportion of firms planning to expand their workforce since the recession in 2008.

The latest figures from the quarterly economic survey indicate that optimism may have been given a reality check.

Some 14% said staff levels had decreased over the past three months – the highest level since since the end of 2012.

David Ward, chief executive of Strood-based Ward Security, said: “The government should bear some responsibility for this U-turn in confidence.

“A misjudged decision to hold a general election and Brexit negotiations that appear somewhat disorganised are not convincing markets that we have a strong and stable government.

“With so much uncertainty, you can understand why businesses are reining in ambitions to grow their staff numbers.”

Becky Simms, managing director of Maidstone-based digital marketing agency Reflect Digital, said: “The recruitment market will always be effected by growth plans, if businesses are not expecting to grow then this will lead to less opportunity for new roles.

“Also staff are more likely to want to stay put when the economic future is less clear.”

In brief

• Firms remain cautious about investment in training and kit. The proportion of companies which upped their spend on staff skills was 24%, down four points, while those which bought more equipment fell five points to 18%.
• The number of firms planning to increase prices slowed in the second quarter, after six months of price adjustments after the EU referendum. Nearly two-thirds expect prices to stay constant, compared to 54% in the first three months of the year. Meanwhile, 32% plan to increase prices, down 10 points, but still higher than 27% in the third quarter of last year in the aftermath of the Brexit vote.
• Cashflow worsened for a quarter of respondents, although this is down four points on the first three months of the year.