“British businesses are facing unprecedented pessimism, with confidence levels now lower than those in heavily sanctioned Russia. Following Chancellor Rachel Reeves’s £40bn tax hike, companies are bracing for stagflation, job cuts, and shrinking profits. The S&P Global survey reveals that UK sentiment has deteriorated faster than any major economy since October, marking a stark contrast to improving outlooks in the US and eurozone. Inflation remains stubbornly high at 3%, raising concerns about increased costs from April, including rising National Insurance and minimum wage hikes. Firms worldwide are cutting hiring and investment, with the UK, Germany, France, and China expecting net job losses. While US business confidence has strengthened, fears of a recession loom, exacerbated by Donald Trump’s tariff policies. Markets continue to react negatively, with major stock indexes experiencing further declines.”
Quotation by Nigel Holland
- UK business confidence is lower than Russia’s amid economic challenges.
- S&P Global survey signals widespread UK job cuts and declining profits.
- Inflation at 3% pressures businesses with rising National Insurance and wage costs.
- Global firms are scaling back hiring and investment due to economic uncertainty.
- US market optimism contrasts with recession fears triggered by Trump’s tariffs.