You can view the latest national report on www.icaew.com/bcm
KEY FINDINGS
- Business sentiment turned negative for the first time in over two years, falling to -3.0, the lowest reading since Q4 2022. Higher business taxes alongside weak UK economic growth and increased global uncertainty related to US tariffs have further dented confidence.
- Concern about the tax burden reached unprecedented levels across all sectors, a new record for the survey and a considerable increase on the previous all-time high in Q4 2024. This was also three times higher than the historic average and a seven-fold increase over the past four years
- Inflationary pressure is another likely concern, as input prices picked up for the first time since Q2 2023, and companies have lifted their expectations. Many businesses have also uplifted their projections for wages growth, further dampening profits growth expectations.
- Domestic sales and exports growth are hovering around the historical average, and while companies continue to expect growth to pick up, they have lowered their expectations for domestic sales.
- Employment growth slowed in Q1, the lowest rate since Q2 2021. Furthermore, expectations for the year ahead have weakened to its lowest rate since Q4 2020, though still above the growth achieved this quarter.
- Confidence varied significantly across sectors in Q1 2025 but was down in most. The Manufacturing & Engineering sector was the most pessimistic after confidence slipped into deep negative territory, alongside Transport & Storage, Retail & Wholesale and Property, while sentiment improved in IT & Communications, Construction and Energy, Water & Mining.
On the morning of 24th April from 8.30am, we will be holding a webinar discussing the report’s results, along with what likely impact the results will have on the prospects for business growth in the South West Region. We will be joined by representatives from four different local funding agencies to find out what they can offer businesses in the region.
Do join us by booking your place through this link ICAEW South West: Regional Q1 BCM review | From startup to scale-up: Funding options available | 24 April 2025
The event is open to anyone interested so please do pass onto colleagues.
