Business Insights And Impact On The UK Economy

15th July 2023

Excerpts from a report from the Office for National Statistics published on 13 July 2023 linked at the bottom of the page.

Fewer than a quarter (24%) of trading businesses reported lower turnover in June 2023 compared with May 2023; in comparison, 15% reported their turnover was higher in June, with both figures broadly stable with the proportions reported for May 2023.

When looking ahead to August 2023, more than half (54%) of trading businesses expect their turnover to stay the same while 15% reported that they expect their turnover to increase, down four percentage points from the 19% reported for July 2023.

Fewer than one in six (15%) trading businesses expect to raise the prices of goods or services they sell in August 2023; of these, a quarter (25%) reported energy prices as a reason for considering doing so, 21% reported labour costs and 19% reported raw material prices.

More than one in six (17%) trading businesses reported they expect staffing costs to increase over the next three months, with the accommodation and food service activities industry reporting the largest proportion (25%); these percentages are down from 30% and 61%, respectively, from April 2023.

Nearly one in five (18%) businesses reported a decrease in domestic demand for goods and services in June 2023 compared with May 2023; this is up from the 16% reported for both May and April 2023.

The proportion of trading businesses that reported that their turnover had decreased compared with the previous month was 24%, broadly stable with May 2023. The accommodation and food service activities industry had the largest proportion of businesses reporting a decrease in turnover, at 39%. Trading businesses within this industry commented they were being affected by the high inflation of food and drink prices and the higher level of Value Added Tax (VAT).

The proportion of trading businesses that reported their turnover had increased in June 2023, compared with May 2023, was 15%. Most trading businesses in all sectors reported turnover had remained the same, broadly stable with May 2023.

More than one in six (15%) trading businesses expect turnover to increase in August 2023 down from 19% of businesses that had these expectations for July 2023.

In comparison, one in six (17%) trading businesses expect their turnover to decrease in August 2023, up from the 13% reported for July 2023. Most trading businesses, however, expect turnover to remain the same (54%), broadly stable with expectations for July 2023.

The percentage of trading businesses that reported higher prices for goods or services bought in June 2023 compared with May 2023 was 32%, broadly stable with those that reported higher prices in May 2023 compared with April 2023.

When asked in early July 2023, fewer than one in six (15%) trading businesses expected to raise the prices of goods or services they sell in August 2023, down from the 17% reported for July 2023. In comparison, 59% of businesses expect prices to stay the same in August 2023, this is broadly stable when comparing with expectations of July.

More than a quarter (29%) of businesses reported their staffing costs have increased over the last three months, broadly stable with early April 2023.

More than one in six (17%) businesses reported they expect staffing costs to increase over the next three months, down 13 percentage points from 30% of those who had these expectations in early April 2023.

The accommodation and food service activities industry reported the highest proportion of businesses that expect staffing costs to increase over the next three months, however this was down 36 percentage points from early April 2023.

Read the full ONS report HERE