BCC Survey: Business Confidence Remains Fragile Amid Global Turmoil

The British Chambers of Commerce (BCC) latest Quarterly Economic Survey shows that UK business confidence remained fragile at the start of 2026, despite small signs of recovery emerging late last year. Around 49% of firms expect turnover to improve over the next 12 months, while one in five anticipate a decline, underlining the uncertain trading outlook.

Cost pressures continue to dominate business concerns, with labour costs cited by 73% of firms as the greatest challenge, followed by energy costs, which affected over half of respondents even before recent global energy price shocks. Sectors most exposed to international trade and logistics, including manufacturing and transport, reported particularly acute pressures.

Although the survey was conducted largely before the full impact of the Iran conflict, businesses are already warning that rising energy, shipping and inflationary pressures could further disrupt global supply chains and export activity in the months ahead.