Fashion
UK biz confidence subdued, investment intentions weak in Q1 2026: BCC
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)