Business insights and impact on the UK economy: 22 May 2025

23rd May 2025

Approximately 1 in 7 (14%) trading businesses reported that their turnover had increased in April compared with the previous calendar month, down 4 percentage points from March. In contrast, 24% reported that their turnover had decreased, remaining broadly stable over the same period.

Around 1 in 7 (14%) trading businesses reported that they expect their turnover to decrease in June 2025; although down 2 percentage points from expectations for May 2025, this proportion is 4 percentage points higher than June 2024, suggesting that businesses are more pessimistic than they were at this time last year.

Economic uncertainty was the most reported challenge affecting turnover for trading businesses in early May 2025, at 30%, down 3 percentage points from early April 2025; for businesses with 10 or more employees, the most commonly reported challenge was cost of labour at 39%, down 2 percentage points over the same period.

More than 3 in 10 (32%) trading businesses reported an increase in the prices of goods or services bought in April 2025, when compared with the previous month; this is broadly stable with March 2025, after a steady increase of 13 percentage points from October 2024.

Around half (46%) of trading businesses with 10 or more employees cited labour costs as a reason for considering raising their prices in June 2025; while this is down 8 percentage points from May 2025, it is 7 percentage points higher than June 2024.

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

Read the full ONS report HERE