Business Outlook Tracker

UK economic outlook

Net 73% of respondents are optimistic about the outlook of the UK economy, a +2 percentage points (pp) increase compared with July 2024. There's also been a slight increase in business pessimism about the UK economy across this year with 13% of businesses pessimistic about its outlook, a +4pp increase compared to February 2024. 

Optimism on the outlook of the UK economy over next six months

Funding position

With interest rates remaining high at 5%, despite inflation falling, businesses' confidence in their funding position continued a steady decline in October. Confidence dropped -3pp compared with July, and -9pp compared with February.   

Optimism on business funding position over next six months

Business investment expectations

With the Government's downbeat narrative ahead of the Autumn Budget, investment expectations have largely remained flat across most areas. A notable exception is employee reward and benefits, which has increased by +7pp since the previous round to an all-time high since the Tracker began in 2021. This increase is likely in response to increasing demand from employees for flexible benefits that support balance and promote wellbeing. It's also in line with the intentions of the Government’s recently unveiled Employment Rights Bill, which includes measures intended to promote flexible working, support working families, and set new standards and protections for workers.