"According to a new report from EY, 64 UK-listed firms issued profit warnings in the third quarter of 2025 - and one in five cited deteriorating consumer sentiment as a key factor. This marks the highest proportion of warnings linked to consumer confidence since late 2022, when soaring energy prices and the cost-of-living crisis drove sharp reductions in household spending."
"Businesses in the software and computer services sector issued the most profit warnings, followed by construction and media. Construction has also been the most affected sector in terms of corporate collapse, recording 3,934 insolvencies in the 12 months to August, according to the Insolvency Service. Wholesale and retail firms - including those involved in vehicle repair - were the second most impacted, with 3,710 insolvencies over the same period."
64 UK-listed firms issued profit warnings in the third quarter of 2025, with one in five citing deteriorating consumer sentiment. The proportion of warnings tied to consumer confidence is the highest since late 2022, when energy prices and the cost-of-living crisis reduced household spending. Macroeconomic and geopolitical instability featured in a record 47% of warnings, with policy shifts and international tensions acting as drag factors. Software and computer services issued the most warnings, followed by construction and media. Construction recorded 3,934 insolvencies in the 12 months to August; wholesale and retail recorded 3,710. Overall corporate insolvencies rose 2% year-on-year to 2,000 in September, while administrations fell 17% to 124. The knock-on effect of weakening consumer confidence and persistent uncertainty has spread to households.
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