Business Insights And Impact On The UK Economy

21st September 2024

The impact of challenges facing the economy and other events on UK businesses. Based on responses from the voluntary fortnightly business survey (BICS) to deliver real-time information to help assess issues affecting UK businesses and economy, including financial performance, workforce, trade, and business resilience.

More than a quarter (26%) of trading businesses reported a decrease in their turnover in August 2024 compared with July 2024, up 3 percentage points from last month and the highest proportion reported since January 2024; in contrast, 14% reported an increase in their turnover, remaining broadly stable from last month.

Almost 1 in 5 (19%) trading businesses expect an increase in turnover in October 2024, with 53% expecting turnover to stay the same up 2 and down 5 percentage points on expectations for September 2024; in contrast 14% expect a fall in turnover, remaining broadly stable over the same period.

Approximately 1 in 5 (20%) trading businesses reported an increase in the prices of goods or services bought in August 2024 when compared with July 2024, while less than 1 in 10 (6%) reported an increase in the prices of goods or services sold; these are the lowest proportions reported since these response options were introduced in March 2022.

More than two-thirds (67%) of trading businesses expect the prices of goods or services they sell to stay the same in October 2024, up 3 percentage points on expectations for September 2024; the proportion of businesses that expect to increase their prices in October 2024 was 11%, remaining broadly stable with September 2024.

In early September 2024, 8% of all businesses and 20% of businesses with 10 or more employees reported that they were experiencing worker shortages; both figures are broadly stable with early August 2024.

The percentage of businesses that reported they were trading in early September 2024 was 95%, with 85% fully trading, and 10% partially trading - for example, trading with reduced hours or staff numbers. Meanwhile, 4% of businesses reported "temporarily paused trading", and 1% reported "permanently ceased trading" as their business's trading status.

Read the full ONS report HERE