Nearly half of UK firms expect to sell more over the next year. But more of them saw cash flow fall than rise this summer. That is the main finding of the British Chambers of Commerce Quarterly Economic Survey for the third quarter of 2026, published on 7 October.
Over 4,300 businesses took part, and 92% of them were small and medium-sized firms. The fieldwork ran from 18 August to 15 September.
01What the BCC Quarterly Economic Survey found
- Turnover hopes rose. 47% of firms expect turnover to rise over the next 12 months, up from 44% in the second quarter.
- Cash flow is still falling for more firms. 29% reported lower cash flow and 22% reported higher. The gap has narrowed, but it is still negative.
- Investment is stuck. Only 17% plan to invest more in plant, machinery or equipment in the next three months. The BCC says that is a post-pandemic low.
- Labour is the main cost pressure. 69% of firms cited labour costs, rising to 78% in hospitality.
Inflation remains the top worry, cited by 60% of firms. Taxation comes next, at 52%, with the Budget due on 28 October.
02Why sales and cash are moving apart
The survey does not give a reason for the cash figures. But more work can mean more cash going out first, on wages, stock and materials, before customers pay.
So a busy order book does not always mean a healthy bank balance. Firms with rising sales can still be short of the cash to fund them.
03What this means if you need finance
Arrange working capital before the busy period, not during it. A lender will want to see a cash flow forecast and recent management figures, and that takes time to prepare.
For an established business, business growth finance such as an overdraft, a revolving facility or invoice finance can cover the gap between paying out and getting paid.
The same gap catches people who buy a business. The price is funded, but the first payroll and stock bills arrive before the first customer payments. Our guide to working capital after buying a business shows how to plan for it.
