Business insights and impact on the UK economy 21 August 2025

21st August 2025

16% of trading businesses reported that their turnover had increased in July 2025 compared with the previous calendar month, and was broadly stable from June; in contrast, 24% reported their turnover had decreased, also broadly stable over the same period.

Around 1 in 7 (15%) trading businesses reported that they expect their turnover to decrease in September 2025, decreasing by 5 percentage points compared with expectations for August; in comparison, 15% reported that they expect their turnover to increase, broadly stable with expectations for August.

Economic uncertainty was the most reported challenge affecting turnover for trading businesses in early August 2025 at 25%, down 7 percentage points from early April (32%); for businesses with 10 or more employees, the most commonly reported challenge was cost of labour at 36%, down 6 percentage points over the same period.

Around a quarter (25%) of trading businesses reported an increase in the prices of goods or services bought in July 2025 when compared with the previous month; this is broadly stable with June but down 7 percentage points from April.

Around 1 in 8 (12%) trading businesses expect the prices of goods or services they sell to increase in September 2025, down 12 percentage points from April (24%); 22% of all businesses and 37% of businesses with 10 or more employees cited labour costs as a reason for considering price rises.

17% of businesses with 10 or more employees reported that they were experiencing worker shortages in early August 2025, which is broadly stable with early July and has steadily declined since early June 2022 (36%).

Read the full ONS report HERE