Business insights and impact on the UK economy February 2026

20th February 2026

Nearly a third (31%) of trading businesses reported that their turnover had decreased in January 2026 compared with the previous month, which is broadly stable with December 2025, but has increased by 3 percentage points compared with January 2025; in contrast, 16% reported that their turnover had increased, up 3 percentage points from December 2025.

Around one in eight (13%) trading businesses expect their turnover to decrease in March 2026, which is 7 percentage points down compared with February 2026, and the same proportion as March 2025; 21% of trading businesses reported that they expect their turnover to increase in March 2026, up 6 percentage points compared with expectations for February 2026.

Economic uncertainty remained the most reported challenge affecting turnover for trading businesses in early February 2026, at 30%, which is broadly stable compared with early January 2026; the most reported challenge for businesses with 10 or more employees was cost of labour (36%), which was also broadly stable over the same period.

Over a quarter (28%) of trading businesses reported an increase in the prices of goods or services bought in January 2026 compared with the previous month, which was the highest proportion reported since April 2025; 12% reported an increase in the prices of goods or services sold, which was also the highest proportion reported since April 2025.

Around one in six (17%) trading businesses expect the prices of goods or services they sell to increase in March 2026; this is down 3 percentage points from expectations for February 2026, but was broadly stable compared with March 2025.

16% of businesses with 10 or more employees reported that they were experiencing worker shortages in early February 2026; this proportion has been broadly stable since October 2025.

Read the full ONS report HERE