UK Businesses Face Challenges Amidst Changing Economic Landscape

London, UK – The latest release from the voluntary fortnightly Business Insights and Conditions Survey (BICS) highlights the impact of various challenges on UK businesses and the economy. The survey provides real-time information on factors such as financial performance, workforce, trade, and business resilience.

Key Findings:

1. Turnover: Less than a quarter (23%) of trading businesses reported a decrease in turnover in May 2023 compared to the previous month. This is a slight improvement from April 2023 when 26% reported lower turnover. Conversely, 16% of businesses reported higher turnover in May 2023.
2. Turnover Expectations: In early June 2023, 19% of trading businesses anticipated an increase in turnover in July 2023. However, this figure is down from 21% of businesses that had similar expectations for June 2023.
3. Price Increases: 30% of trading businesses reported an increase in the prices of goods or services bought in May 2023 compared to the previous month. This is a 5-percentage point decrease from April 2023 and a gradual decline from the 48% reported in September 2022. Looking ahead to July 2023, 17% of trading businesses expect to raise their prices, with 27% attributing these increases to energy prices.
4. Cost Absorption: 41% of trading businesses reported absorbing costs due to the general increase in prices in early June 2023. On the other hand, 25% of businesses passed these increases onto their customers.
5. Workforce Challenges: More than a quarter (27%) of businesses with 10 or more employees reported difficulties in recruiting employees in May 2023. Although this percentage remained unchanged from April 2023, it represents a slight improvement from the 30% reported in March 2023.

These findings highlight the ongoing challenges faced by UK businesses amidst a changing economic landscape. While there are indications of stability and improvements in some areas, businesses continue to grapple with turnover fluctuations, price increases, and workforce shortages. It is crucial for policymakers and businesses alike to closely monitor these trends and adapt strategies to support the resilience and growth of the UK economy.