US EditionTrade war, labour costs herald weakest UK outlook since 2022, CBI says
- On June 2, 2025, a report from the leading UK business organization indicated that 30 percent of companies anticipate a drop in activity over the coming three months, marking the lowest sentiment since September 2022.
- This decline follows rising labour costs from April's employer National Insurance hikes and the national living wage increase, alongside global trade tensions affecting supply chains.
- The downturn affects all major sectors, with service firms projecting a 32 percent drop in volumes, distribution sales declining 39 percent, and manufacturing output expected to shrink by 14 percent.
- Almost one-third of hospitality businesses are currently unprofitable, with over 60 percent having reduced staff numbers or working hours, and more than 50 percent abandoning planned investments, all amid rising costs connected to recent tax increases.
- The CBI warned that without swift government action to improve business confidence and reform policies, the subdued outlook could persist, prolonging economic drag through summer and beyond.
9 Articles
9 Articles
Trade war, labour costs herald weakest UK outlook since 2022, CBI says
British firms expect output to slide over the next three months, in their gloomiest outlook since September 2022, as the implications of U.S. tariffs and higher payroll taxes weigh on the private sector, an industry survey showed on Monday.
Inheritance tax changes could lead to loss of 19,000 jobs across Yorkshire and Humber, report claims
Almost 19,000 jobs could be lost across Yorkshire and the Humber as the owners of family businesses and farms respond to changes in inheritance tax announced in last year’s Budget, according to research from Family Business UK.
Business growth expectations fall to weakest since 2022
Growth expectations among private sector firms continue to decline rapidly, fresh figures suggest, with forecasts reaching their lowest since September 2022. According to the CBI’s recent Growth Indicator survey, 30 per cent more private sector firms are expecting activity to fall than to grow over the next three months. “There is little sign of summer cheer in our surveys,” said Alpesh Paleja, deputy chief economist at the CBI. “Our surveys wer…
Private sector confidence hits lowest level since 2022 as wage and trade pressures mount – Your Capital Minds
Business sentiment in the UK private sector has slumped to its weakest level in nearly three years, as rising wage costs and mounting global trade concerns weigh heavily on economic outlook. The latest “growth indicator” from the Confederation of British Industry (CBI) reveals that a net balance of 30 per cent of companies expect a decline in activity over the next three months—a further deterioration from the -26 per cent recorded in May, and t…
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