Business insights and impact on the UK economy

22nd March 2025

More than a quarter (26%) of trading businesses reported that their turnover had decreased in February, compared with the previous calendar month; this is down 2 percentage points from January, but in line with historical movements seen at this time of year.

Approximately one in seven (14%) trading businesses reported that they expect their turnover to decrease in April 2025, broadly stable with expectations for March; however, this is 4 percentage points higher than April 2024, suggesting businesses are less optimistic than they were at this time last year.

In early March 2025, the cost of labour was the most commonly reported challenge affecting turnover for trading businesses with 10 or more employees at 37%; this is the largest proportion reported since the question was introduced in April 2022.

Nearly 3 in 10 (29%) trading businesses reported an increase in the prices of goods or services bought in February 2025 when compared with January 2025, while 11% reported an increase in prices sold; both percentages were broadly stable compared with January.

More than half (56%) of trading businesses with 10 or more employees cited labour costs as a reason for considering raising their prices in April 2025; this is up 8 percentage points from March and the largest proportion reported since the question was introduced in April 2022.

In early March 2025, 8% of trading businesses reported that they were currently experiencing worker shortages, which is broadly stable since February 2024; this rises to 18% for businesses with 10 or more employees, which is broadly stable since September 2024.

Read the full ONS report HERE