One in five of the 64 profit warnings issued by UK-listed companies during Q3 2025 cited weaker consumer confidence, up from 6% a year earlier. Nineteen percent of all warnings referenced falling consumer sentiment, rising to 56% for listed retailers. Policy change and geopolitical uncertainty were cited in nearly half (47%) of warnings, the highest share in more than 25 years. Thirty-four percent of warnings cited contract and order cancellations or delays, and 22% referenced tariff-related impacts, including weaker demand and supply chain disruption. Nearly 18% of UK-listed businesses issued at least one profit warning in the last 12 months. Businesses are adapting operations and supply chains amid persistent uncertainty and weakening household demand.
"One in five of the 64 profit warnings issued by UK-listed companies during Q3 2025 cited the impact of weaker consumer confidence, the highest proportion recorded for this cause since 2022 and up from just 6% during the same period last year, according to EY-Parthenon's latest Profit Warnings report. While 19% of all profit warnings referenced falling consumer sentiment, this figure rises to more than half (56%) for listed retailers."
"The leading factor behind profit warnings during the third quarter was policy change and geopolitical uncertainty, cited in nearly half (47%) of warnings. This marked the highest percentage recorded for this cause in more than 25 years of EY's analysis, and a significant increase from 17% in Q3 2024. A third (34%) of profit warnings issued in the third quarter cited contract and order cancellations or delays, while 22% referenced tariff-related impacts, including weaker demand and supply chain disruption."
#profit-warnings #consumer-confidence #geopolitical-uncertainty #supply-chain-disruption #retail-sector
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