Business Insights And Impact On The UK Economy - 3 October 2024

4th October 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.

Nearly 3 in 5 (56%) businesses reported in late September 2024 that they were not concerned about the impact climate change may have on their business; this is up 4 percentage points from June 2024 and the highest proportion reported since the question was first introduced in the Business Insights and Conditions Survey (BICS) in September 2022.

Approximately 1 in 7 (15%) businesses reported in late September 2024 that they are currently using some form of artificial intelligence (AI) technology, 5 percentage points higher than in late September 2023; for businesses with 250 or more employees, this percentage was higher at 30%, a rise of 12 percentage points over the same period.

Approximately 1 in 5 (21%) businesses had concerns about their supply chains over the next 12 months, with this percentage higher at 34% for the wholesale and retail trade industry and 33% for the manufacturing industry; the most reported concerns were increased barriers to trade, shipping disruption and international conflict, all 8%.

Nearly a quarter of businesses (24%) reported that they would increase their prices if they were to experience higher employment costs in the future, with 18% indicating that they would absorb the extra costs within their profit margins; for businesses with 10 or more employees, these percentages increased to 40% and 31%, respectively.

Fewer than 1 in 10 (8%) trading businesses reported that they are currently stockpiling goods and materials, a slight fall from the 9% reported in June 2024; the wholesale and retail trade industry had the highest proportion of businesses who were stockpiling, at 19%, a rise of 3 percentage points from June 2024 and the highest proportion for this industry since the question was introduced in the survey in February 2021.

Read the full ONS report HERE