Business insights and impact on the UK economy

22nd February 2025

Approximately one in six (16%) trading businesses reported that their turnover had increased in January 2025 compared with the previous calendar month, up 2 percentage points from December 2024. The proportion that reported a decrease (28%) fell by 2 percentage points over the same period, in line with movements seen at this time of the year in 2023 and 2024.

More than one in five (22%) trading businesses reported that they expect their turnover to increase in March 2025, up 5 percentage points compared with February 2025; conversely, 13% reported that they expect their turnover to decrease, down 6 percentage points over the same period, but in line with expectations seen at this time in previous years.

More than a quarter (28%) of trading businesses reported an increase in the prices of goods or services bought in January 2025 when compared with December 2024, up 4 percentage points from the previous month, and the largest proportion reported since July 2023.

More than 1 in 10 (13%) trading businesses reported an increase in the prices of goods or services sold in January 2025 when compared with December 2024, up 5 percentage points from the previous month, and the largest proportion reported since April 2024.

More than 4 in 10 (46%) trading businesses reported they were not considering raising prices in March 2025, broadly stable with February 2025; labour costs continued to be reported as the main reason for businesses considering raising prices, at 28%.

When looking ahead to March 2025, 65% of businesses reported having some form of concern for their business, broadly stable with February 2025; the most-reported main concern continues to be falling demand for goods and services, at 18%.

The percentage of trading businesses that reported their turnover had decreased in January 2025 was 28%, compared with the previous calendar month, down 2 percentage points compared with December 2024. Over the same period, 16% reported their turnover had increased, up 2 percentage points, while 48% reported their turnover had stayed the same.

Looking at year-on-year comparisons, the proportion of businesses who reported either increases or decreases in their turnover has followed a similar trend for this time of year.

In early February 2025, nearly 3 in 10 trading businesses (29%) reported that economic uncertainty is currently having an impact on their turnover. This is broadly stable with early January 2025, but the largest proportion of businesses to report this since January 2023 (32%). The retail estate activities industry reported the highest proportion of businesses being affected by this, at 51%.

For businesses with 10 or more employees, the cost of labour (35%) was reported as the main challenge, broadly stable with early January 2025. The accommodation and food service activities industry had the highest proportion of businesses reporting this as one of their top challenges, at 59%.

Despite this, 31% of all trading businesses indicated that they were not currently experiencing any turnover challenges. This is also broadly stable with early January 2025.

When looking ahead to March 2025, 22% of trading businesses expect their turnover to increase, a rise of 5 percentage points from expectations for February 2025. Conversely, 13% of businesses expect a decrease in turnover, a decline of 6 percentage points over the same period.

When comparing data from previous years, there is a consistent pattern of more optimistic turnover expectations at this time of year, with a higher proportion of businesses expecting an increase in turnover and a lower proportion expecting a decrease. The data show that businesses expect to experience increased difficulties related to turnover in November, December, and January, but are then more optimistic that their turnover will increase in February and March.

Read the full ONS report HERE