"Business leaders have warned that Britain is entering 2026 amid a sharp economic downturn in the private sector, after companies put the brakes on investment and hiring before the autumn budget. In a gloomy snapshot after months of tax speculation, the Confederation of British Industry (CBI) said private sector output was on track to fall in the fourth quarter of 2025."
"Uncertainty ahead of November's budget put the brakes on key spending decisions and big projects, choking up pipelines of work. The latest growth indicator suggests that the alleviation of this uncertainty hasn't materially boosted activity. 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."
"Separate figures from the jobs website Adzuna showed the number of UK job vacancies shrank in November for a fifth month running. Reporting a 6.4% month-on-month slide in new openings, the jobs website said 2025 had been one of the toughest years for jobseekers since the pandemic. The chancellor's tax and spending statement on 26 November does not appear to have kickstarted business optimism."
Private sector output in Britain is on track to fall in the fourth quarter of 2025 as companies limited investment and hiring ahead of the autumn budget. Falling activity was reported across all sectors in the three months to December according to the Confederation of British Industry's growth indicator. Job vacancies shrank in November for a fifth consecutive month, with new openings down 6.4% month on month and 2025 described as one of the toughest years for jobseekers since the pandemic. Private firms predict further declines in activity over the next three months amid tepid demand and strong cost pressures squeezing margins.
Read at www.theguardian.com
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