UK businesses have experienced a sharp decline in activity over the past month and expect trading conditions to remain weak until at least March, according to a new survey from the Confederation of British Industry.
The CBI’s latest growth indicator for the private sector showed a weighted balance of -34 per cent, indicating that a significant majority of firms reported falling activity over the past three months. Companies surveyed said they expected the sluggish conditions to persist into the early spring, underscoring continued fragility across the economy.
Economists said the downturn was partly driven by cautious consumers, who reined in spending amid weeks of intense speculation ahead of November’s Budget. Despite that uncertainty now easing, businesses report little evidence of a rebound.
Alpesh Paleja, deputy chief economist at the CBI, said the figures capped a disappointing year for private sector growth. “They mark a continuation of the headwinds that have plagued businesses over the past 12 months: tepid demand conditions, with households cautious around spending, and strong cost pressures squeezing margins,” he said.
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