Looking forward, sentiment confirmed modest enchancment. One in 5 businesses anticipate turnover to say no in February 2026, 5 proportion factors fewer than in January and the identical stage as February 2025. Meanwhile, 16 per cent anticipate a rise, up three proportion factors from the earlier month, the Office for National Statistics mentioned in a press launch.
Economic uncertainty remained probably the most cited problem affecting turnover in early January 2026, reported by 31 per cent of trading businesses, although this was barely decrease than in early December. For corporations with 10 or extra staff, the price of labour was the dominant concern at 36 per cent, remaining broadly steady.
UK trading businesses ended 2025 cautiously, with 32 per cent reporting a fall in turnover in December, whereas 13 per cent noticed development, in accordance with the Business Insights and Conditions Survey.
Outlook improved barely for February 2026 as fewer corporations anticipate declines.
Economic uncertainty and labour prices remained key challenges, whereas value pressures and employee shortages confirmed indicators of stabilising.
Price pressures persevered however confirmed little acceleration. About 26 per cent of businesses reported larger enter costs in December 2025, just like November ranges, whereas 9 per cent elevated costs charged, a pattern broadly steady since May 2025. Looking forward, 21 per cent anticipate promoting costs to rise in February 2026, down barely from January expectations.
Labour market pressures eased marginally. In early January 2026, 16 per cent of bigger businesses reported employee shortages, the bottom stage because the measure was launched in October 2021.
The figures are based mostly on remaining outcomes from Wave 148 of BICS, carried out between January 5 and 18, 2026.
Fibre2Fashion News Desk (SG)