Business confidence in the United Kingdom remains subdued and investment intentions are weak, according to the results from the British Chambers of Commerce’s (BCC) Quarterly Economic Survey (QES) for the first quarter (Q1) this year.

Cost pressures, though no longer accelerating, remain elevated. Firms continue to report difficulties in recruitment, while a significant proportion expect to raise prices in the coming months.

UK business confidence remains subdued and investment intentions are weak, the BCC Quarterly Economic Survey for Q1 2026 shows.
Cost pressures, though no longer accelerating, remain elevated.
Firms continue to report difficulties in recruitment, while a significant proportion expect to raise prices in the coming months.
Firms are not reporting crisis conditions, but neither are they signalling momentum.

The QES did not register a sudden collapse. Instead, it showed a long plateau of hesitation. Investment balances weakened and remained weak. Confidence drifted rather than fell. Firms delayed decisions. The signal was not panic but paralysis, a BCC release noted.

Firms are not reporting crisis conditions. But neither are they signalling momentum. The British economy appears to be operating below potential, with limited resilience to absorb further shocks.

The nature of the next shock will determine how these indicators move, and how severe the impact will be, the BCC feels.

An escalation of conflict in Iran would most likely transmit through energy prices and global supply chains. If so, the QES would be expected to register a familiar pattern: rising input costs, increased price expectations, and a renewed squeeze on margins. Confidence could weaken further, particularly if financial markets react sharply. Investment, already subdued, may be delayed again.

The risk is not simply the shock itself, but the accumulation of shocks and their long-term economic consequences. Over the past decade, UK businesses have had little time to rebuild buffers. Each episode—uncertainty, shutdown, inflation, volatility—has left its mark. The latest QES shows an economy that has adapted, but not fully recovered.

The latest data does not yet show a new earthquake, but does reveal some very shaky ground, BCC added.

Fibre2Fashion News Desk (DS)

US households expect higher inflation in the near term, with the Federal Reserve Bank of New York’s March 2026 Survey showing one-year-ahead expectations rising to 3.4 per cent and three-year outlook edging up to 3.1 per cent, while the five-year view held steady at 3 per cent.

Gas price growth expectations surged sharply to 9.4 per cent, the highest since March 2022, signalling renewed pressure on household budgets, the Federal Reserve Bank of New York said in a press release.

US households expect higher near-term inflation, with one-year expectations rising to 3.4 per cent, driven by a sharp spike in gas price outlook to 9.4 per cent.
While job-finding prospects improved, unemployment concerns increased.
Household sentiment weakened amid rising spending expectations and stable income growth, with greater uncertainty and pessimism about future financial conditions.

The labour market sentiment showed mixed signals. Job-finding expectations improved, but concerns about unemployment rose, with the probability of higher joblessness climbing to 43.5 per cent, the highest since April 2025. The likelihood of job loss also increased marginally.

Household financial sentiment weakened, as more respondents reported deteriorating current and future financial conditions. While income growth expectations remained steady at 2.9 per cent, spending expectations rose slightly to 5.1 per cent, indicating persistent cost pressures.

Credit access perceptions improved compared to a year ago, though expectations for future availability worsened. Meanwhile, inflation uncertainty increased across all horizons, reflecting growing economic unease among US households.

Fibre2Fashion News Desk (SG)