"The quarterly confidence index, which is based on responses from business leaders, has increased to 93.6, up from 88 in Q3 2025 and 91.4 in Q4 2024. While overall confidence has edged up, the Autumn Budget appears to have done little to lift sentiment about the wider economy, suggesting that leaders' growing confidence lies more in their own ability to navigate conditions than in expectations of external support."
"The findings suggest a cautious outlook, with leaders focusing less on a quick economic recovery and more on what they can control within their own businesses. In contrast, SME leaders are far more positive about their own organisations. Nearly two‑thirds (63%) expect their firm's sales revenues to increase over the next year, while only 6% expect a decline. Half anticipate an improvement in profitability (50%), with around a third expecting profits to hold steady (32%) and a smaller group expecting them to worsen (18%)."
The quarterly confidence index rose to 93.6, up from 88 in Q3 2025 and 91.4 in Q4 2024. The Autumn Budget did little to improve sentiment about the wider economy. More than half (54%) say economic conditions have worsened over the past year, while only 6% say they have improved. Looking ahead, 39% expect deterioration, 12% expect improvement, and 45% expect conditions to remain broadly the same. SME leaders report stronger internal confidence: 63% expect sales growth, 50% expect profitability improvement, and almost 39% plan to increase fixed investment.
Read at London Business News | Londonlovesbusiness.com
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