MORE than two-thirds of Hampshire companies are likely to be reviewing their business plans and financial forecasts in response to worsening economic conditions, a survey has revealed.

Hampshire Chamber of Commerce’s latest quarterly survey of its 2,000 members found seven out of ten firms were rewriting plans and targets in view of the gloomy outlook.

Over the coming year, just one-third of companies expect to increase profitability and under half predict growing turnover.

Fewer firms reported any increase in sales or orders compared to the previous quarter and there were further weak statistics around recruitment, investment and cashflow.

Chamber chief executive Jimmy Chestnutt said: “The survey confirms that many Hampshire companies are being forced to rethink their strategies so they can stay afloat, generate income and aim for prosperity.

“This is a worrying time and we are in for some seriously challenging times ahead. The Government must do all it can to manage the downward pressures on business and maintain confidence in the regional and national economies.”

Just a third of members reported any increase in UK sales and only a fifth saw an increase in orders, both down on the previous three months.

Exporters also signalled a challenging time, with one in ten reporting an increase in overseas sales compared with 17 per cent in the previous quarter.

Nineteen per cent of respondents reported an improved cashflow picture as opposed to 37 per cent in the third quarter.

Only 16 per cent of companies have increased investment compared with 34 per cent in the last quarter, while the numbers still recruiting staff were also down from 54 per cent to 46 per cent.

The survey follows dismal nationwide figures for retailers suggesting the sector is at a crossroads with the downturn in consumer spending and confidence set to continue.

Mr Chestnutt added: “This is a concern that will need to be addressed as our region develops core strategies and puts into effect plans for growth.”