"Our latest surveys round off a disappointing year for private sector growth. They mark a continuation of the headwinds that have plagued businesses over the past 12 months: tepid demand conditions, with households cautious around spending; and strong cost pressures squeezing margins. Uncertainty ahead of November's Budget also put the brakes on key spending decisions and big projects, choking up pipelines of work."
"Business cannot face another year of stasis and will be looking for the government to expedite delivery in 2026. The effective model of compromise and partnership achieved on the Employment Rights Bill demonstrates what can be achieved through meaningful collaboration. The government must now further leverage private sector expertise to broaden industrial energy cost support and simplify the tax system in pursuit of its growth mission."
The CBI Growth Indicator shows private sector firms expect activity to fall over the next three months (weighted balance -30%), extending negative forecasts since late 2024. Services volumes are projected to decline (-29%), driven by business & professional services (-24%) and consumer services (-46%). Distribution sales expectations weakened sharply to -47%, the lowest since June 2020. Manufacturers predict a modest output fall (-17%). Private sector activity fell -34% in the three months to December with all sub-sectors down. Tepid household demand, strong cost pressures, and Budget-related uncertainty have suppressed spending and project pipelines, prompting calls for targeted policy support.
Read at London Business News | Londonlovesbusiness.com
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