Greater Manchester’s economy continues to show signs of steady growth, according to two reports about the region’s businesses.  

The Growth Company’s Situation Report and Quarterly Business Survey derive economic data and insights from local business surveys. The findings are based on 708 responses completed between 2nd September and 2nd December by clients from the GM Business Growth Hub and MIDAS. 

Measuring the confidence of businesses in the region, the Situation Report’s GC Confidence Index stood at 7.2 – consistent with previous findings.  

Businesses in Greater Manchester are continuing to perform against a background of slowing national growth and ongoing pressures within the region’s business community.  

A total of 55% of firms expected profits to rise in the year ahead and a third plan to increase capital investment – while these figures have dropped they represent signs of optimism despite economic headwinds.  

Confidence levels are above average for Business Financial & Professional Services, but are lower than average in Retail, Green Tech, Life Sciences, and Engineering. 

Rupert Greenhalgh, Head of Business Intelligence at The Growth Company, said: “Over the past decade, Greater Manchester has emerged as one of the UK’s most dynamic and resilient city regions. As we approach 2026, the story of GM is one of transformation - driven by innovation, investment, and a relentless focus on productivity and business growth. 

“The Situation Report has given us an unparalleled insight into the region’s businesses. Confidence remains relatively robust though rising costs continue to be the most significant challenge, cited by 30 per cent of respondents.” 

Recruitment activity has fallen by 3 percentage points, with 22% of businesses currently hiring, particularly among SMEs and in sectors such as BFPS, Construction, Education, Green Tech, Manufacturing and Retail. Yet, workforce skill gaps persist, especially in specialist technical and advanced IT skills, underscoring the need for ongoing investment in talent and training. 

On Tuesday 16 December, an event to highlight the outcomes of the research was held at Sister, an innovation hub in the Renold Building, part of The University of Manchester with representatives from businesses and local government around the region in attendance.  

It is the second time that both organisations have collaborated to showcase the main findings of the research and emphasise the broader industrial trends being seen across Greater Manchester. The first was held on October 24.  

Administered by GM Chamber of Commerce, the Greater Manchester Quarterly Economic Survey is part of the UK’s largest and most reliable business confidence survey. It feeds into the wider national QES, which is published by the British Chamber of Commerce. 

Latest findings from the GM Chamber of Commerce suggest that the Greater Manchester economy has remained broadly stable. 

Business confidence has also edged up, and the GM Index is expected to show a marginal improvement from the last quarter. 

Some measures, including domestic and overseas sales, have shown an improvement, while overall levels of business activity have remained consistent. Overall, the data is in line with expectations of ‘anaemic’ growth in UK GDP. 

Subrahmaniam Krishnan-Harihara, Deputy Director - Research & Information Systems GM Chamber, said: “Overall, the latest results suggest that the Greater Manchester economy is holding steady. We’re seeing small improvements in areas like domestic and overseas sales, and a slight lift in business confidence. 

“The wider picture remains one of low, steady growth rather than a sharp change in direction. Businesses are continuing to operate at similar levels and recruitment remains cautious.”