Some business outlook thoughts from Dun & Bradstreet for you;
According to Dun & Bradstreet’s quarterly 2025 UK Business Optimism Insights report, business sentiment across the UK continued to decline quarter-over-quarter, as firms face a stagnating economy, rising costs, and policy uncertainty. The UK Business Optimism Index edged down 1.0% quarter-on-quarter, extending a decline from the previous reading when the index fell 13.3%.
While business optimism fell a little further, financial confidence, and supply chain continuity optimism levels significantly dropped. This reflects businesses’ concerns about the uncertain policy environment, causing businesses to consider postponing their investment, expansion, and growth plans.
The Business Financial Confidence Index dropped 23.2%, reflecting growing anxiety about liquidity, borrowing costs, and business viability. While overall bankruptcies fell in 2024 compared to the previous year, they remain over 50% above pre-pandemic levels, especially in business services, construction, and hospitality.
Investment sentiment also saw a decline, with the Business Investment Confidence Index falling 8.3%, as companies brace for interest rates to stay higher for longer and reassess plans amid global and domestic uncertainty. The biggest declines came from utilities (-21.1%), food and beverage manufacturers (-18.0%), and capital goods producers (-15.7%), with medium-sized firms the most cautious (-15.9%).
As global trade issues remain in focus, supply chain concerns are deepening among British businesses. The Supply Chain Continuity Index plunged 23.7%, with medium-sized businesses most affected (-44.6%) due to limited leverage and flexibility. These pressures come as the UK’s trade exposure leaves it vulnerable to shifting global supply dynamics.
The UK Business ESG Index further declined 8.7% compared to the previous quarter, a result of declining engagement in social and governance initiatives. However, UK firms still have an optimistic view of environmental, social, and governance considerations, deeming them essential for long-term resilience, compared with our base year.
“These findings are a clear reflection of the ongoing pressures British businesses are feeling in today’s environment – marked by economic pressures, geopolitical uncertainty and changing consumer expectations,” said Edgar Randall, UK Managing Director, at Dun & Bradstreet. “However, they are also a reminder that resilience is built through preparation and that adaptability is crucial. Now is the time for businesses to strengthen their foundations: shore up financial resilience, double down on scenario planning, and remain flexible in both strategy and mindset. The organisations that prepare for multiple scenarios, not just the most likely ones, will be best positioned to make smarter, more resilient decisions, allowing them to remain agile in the face of uncertainty and minimise disruption.”
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