Confidence falls among Kent firms in the third quarter but overall mood of optimism remains, says quarterly economic survey

Confidence fell among Kent firms in the third quarter of the year but there remains an overall mood of optimism, according to the first countywide data since the Brexit vote.

Fewer firms expect improved turnover over the next year and more expected it to get worse compared with the previous three months, said the quarterly economic survey by Kent Invicta Chamber of Commerce.

It found half of 109 respondents expected revenues to increase at their business but this is down six percentage points.

Eurotunnel has grown half-year revenues for 15 consecutive times
Eurotunnel has grown half-year revenues for 15 consecutive times

Meanwhile the proportion of firms which felt sales were likely to decline was up four points, although it remains fewer than one in five at 17%.

There was also a six point slide in the number of companies expecting profits to improve in the next 12 months, down to 42%.

"Encouraging signs, combined with new records broken this quarter for the group put into perspective the change in public opinion following the vote in favour of Brexit: our business has never been stronger...” - Jacques Gounon, Eurotunnel

The amount expecting it to worsen remained the same at 21%.

Around the county, most businesses are putting on a brave face in the light of uncertainty created by the vote to leave the EU in June.

Bosses at Harrisons Chartered Surveyors, which has offices in Maidstone and Gillingham, remain optimistic about the future of the property and development market in Kent, despite uncertainty caused by Brexit.

Jonathan Rogers, who became a director at the family firm this month, said: “We have seen a recent shortage of available commercial property space, with many older properties being converted or redeveloped into residential uses.

“However, we are now seeing positive signs of new commercial development growth in Kent, helping to reverse this recent trend.”

Although confidence is down, many firms are telling stories of advantages gained since the leave vote in the EU referendum, particularly in light of the falling value of the pound.

Fewer companies expect profits to improve over the next year
Fewer companies expect profits to improve over the next year
There are fewer companies expecting improved turnover over the next 12 months
There are fewer companies expecting improved turnover over the next 12 months

Eurotunnel, which operates the Channel Tunnel, increased third quarter revenues by 4% to €320.3m (£286m). Chairman and chief executive Jacques Gounon said: “The group is well placed for the sustained period of growth in the UK economy forecast by the IMF and the Bank of England.

“At the same time, the fall in the value of the pound has had a significant positive impact on the service of our debt.

“These encouraging signs, combined with new records broken this quarter for the group put into perspective the change in public opinion following the vote in favour of Brexit: our business has never been stronger.”

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