Private sector activity fell again in the three months to January, sliding to -33 on the Confederation for British Industry’s latest growth indicator. All sub-sectors reported declining activity in the wake of the Budget…
Confidence has weakened across the board. Consumer services are the most downbeat, with a -38 balance expecting volumes to fall, while professional services are also in the red at -11. Distribution and manufacturing sectors are bracing for further falls. CBI deputy chief economist Alpesh Paleja said:
“The UK economy has not experienced a strong start to 2026. While there are tentative signs of stabilisation and resilience in some specific areas, the big picture remains similar to much of last year: businesses remain cautious, households are downtrading and confidence is still fragile. Worrying, our latest surveys show that persistently weak growth expectations are now accompanied by an uptick in price pressures, at a time when inflation is already uncomfortably high.”
Shadow Business Secretary Andrew Griffith added: “The CBI are slow to criticise so when they say business has had a bad start to the year, Labour should listen. The economy is now constipated by the weight of Labour’s Jobs Tax, business rates hike and the red tape UnEmployment Act.” Thank God Reeves was in Davos last week to assure leaders Britain is the ‘best place in the world to invest’…
