Business insights and impact on the UK economy 22 January 2026

23rd January 2026

Around a third (32%) of trading businesses reported a decrease in their turnover in December 2025 when compared with the previous month, up 4 percentage points from November. Broadly it is in line with movements seen around this time in previous years; in contrast, 13% reported an increase in their turnover, broadly stable compared with November 2025.

1 in 5 (20%) trading businesses expect a decrease in their turnover in February 2026, this is 5 percentage points down compared with January 2026 and the same proportion as expected for February 2025; 16% of trading businesses reported that they expect an increase in their turnover in February 2026, up 3 percentage points from expectations in January 2026.

Economic uncertainty remained the most reported challenge affecting turnover for trading businesses in early January 2026 at 31%, this is down 2 percentage points from early December 2025; the most reported challenge for businesses with 10 or more employees was the cost of labour (36%), which was broadly stable over the same period.

Over a quarter (26%) of trading businesses reported an increase in the prices of goods or services bought in December 2025, when compared with the previous month, broadly stable compared with November 2025; 9% reported an increase in the prices of goods or services sold, which has been broadly stable since May 2025.

Over one in five (21%) trading businesses expect the prices of goods or services they sell to increase in February 2026; this is down 2 percentage points from expectations for January 2026, which was the highest proportion reported since May 2025.

In early January 2026, 16% of businesses with 10 or more employees reported that they were experiencing worker shortages; while the proportion has been broadly stable since January 2025, this was the lowest proportion recorded since this question was introduced in October 2021.

Read the full ONS report HERE