The latest release of the Business Insights and Conditions Survey (BICS) by the Office for National Statistics (ONS) reveals that business conditions in the UK continue to remain challenging. However, there are signs of improvement in several key measures. The survey, conducted fortnightly, provides real-time information to assess the impact of various factors on UK businesses and the economy, including financial performance, workforce, trade, and business resilience.
Key findings from the survey include:
- Supply Chain: In May 2023, 68% of businesses with 10 or more employees reported being able to get the goods they needed from within the UK without disruption, showing a 3-percentage point increase from April 2023. Additionally, 59% of these businesses reported no global supply chain disruption, a 4-percentage point increase from the previous month.
- Business Concerns: Around 67% of businesses reported having some form of concern for their business in July 2023, the lowest percentage since late March 2022. Falling demand of goods and services emerged as the main concern, cited by 15% of businesses.
- Industrial Action: Less than 1 in 10 (7%) businesses reported being affected by industrial action in May 2023, the lowest proportion since July 2022. Of those affected, 33% reported changes in workforce location, while 27% were unable to operate fully.
- Workforce: Approximately 13% of businesses with 10 or more employees reported an increase in employees’ hourly wages in May 2023 compared to April 2023. The accommodation and food service activities industry had the highest proportion (30%) of businesses reporting wage increases.
Despite the ongoing challenges, these findings indicate some positive trends for UK businesses. The proportion of businesses reporting supply chain disruption has decreased, more businesses are able to source materials domestically, and concerns for business performance have declined. The decrease in industrial action and the increase in employees’ wages also contribute to a more positive outlook.
It is important to note that the data presented in the BICS survey are estimates subject to uncertainty. The ONS continues to monitor and analyze business insights and conditions to provide up-to-date information on the state of the UK economy.
For more detailed information, including industry-specific breakdowns, please refer to the full Business Insights and Conditions Survey report on the Office for National Statistics website.