Jersey businesses are facing increased costs and skills shortages, according to new figures.
Statistics Jersey published the Business Tendency Survey numbers for December, which highlighted how costs are expected to continue rising in the next few months local firms.
To establish how business is doing, Statistics Jersey sent a survey to over 500 businesses, with 60% responding.
Costs rise for businesses
The report found that 48% of businesses saw their non-labour costs go up.
More businesses reported costs were rising than falling – with labour costs up 33 percentage points and non-labour costs up 43 percentage points.
Profitability was down by 23 percentage points.
Meanwhile, the biggest limiting factors that businesses cited were staff and skills shortages, lack of demand and regulation.
Staff and skills shortages were cited by 52% of surveyed businesses.
32% said lack of demand affected them, while 28% said they were limited by regulation.
The number of businesses which said they were hampered by financial constraints went hup from September (when 15% cited them) to 22% in December.
How are companies coping?
The survey asked businesses what actions they took to address the limiting factors.
46% said they reduced operational costs, 44% said they hired more staff or upskilled their existing staff, and 34% said they adjusted their prices.
Higher costs expected
A large proportion of businesses “expect higher costs, selling prices, and profitability”, the survey found – both in the finance sector and in other industries.
Statistics Jersey predicted that the level of activity would stay the same outside of finance, and would expand within finance.
Labour and non-labour costs are expected to rise across sectors.