"Firms across the private sector once again expect activity to fall in the next three months (weighted balance of -27%), according to the CBI's latest Growth Indicator. This extends a run of negative predictions that began in late 2024. The downturn is expected to be broad-based, with business volumes in the services sector set to decline (-26%), driven by weak expectations in both business & professional services (-23%) and consumer services (-40%)."
"Growth expectations weakened in November, some of which may be down to jitters ahead of last week's Budget. Businesses tell us that much of the month passed in limbo ahead of that, with big discretionary spending and investment on hold. However, this only compounded the headwinds to growth that have been apparent throughout the year: cautious spending behaviour by households and clients making demand conditions tepid, against a backdrop of persistent cost pressures for corporates."
"Stability is the precursor to growth. While last week's Budget is likely to add further costs to businesses, notably with the addition of NICs to salary sacrifice pension contributions, the fiscal headroom created may provide some stability going forward. The government must now leverage enterprise expertise to unlock economic growth. This starts by applying the effective model of compromise and partnership achieved on the Employment Rights Bill"
Firms across the private sector expect activity to fall in the next three months, with a weighted balance of -27%. The downturn is broad-based: services volumes are forecast to decline -26%, distribution sales -26%, and manufacturing output -30%. Consumer services show the weakest expectations at -40%, while business and professional services are at -23%. Private sector activity already fell -35% in the three months to November, the fastest pace since August 2020, with all sub-sectors reporting declines. Businesses reported discretionary spending and investment on hold ahead of the Budget, while households’ cautious spending and persistent corporate cost pressures weakened demand.
Read at London Business News | Londonlovesbusiness.com
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