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UK companies turn gloomiest this year on growth, CBI says

Published by Global Banking & Finance Review

Posted on June 28, 2026

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· Last updated: June 28, 2026

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UK Companies' Growth Expectations Fall to 2025 Lows, Says CBI Survey

Business Sentiment and Economic Indicators in the UK

Recent Survey Findings

June 29 (Reuters) - British companies expectations for growth in the coming quarter fell this month to their lowest level this year, according to a survey on Monday that added to a run of downbeat business sentiment readings.

The Confederation of British Industry (CBI) said its gauge of expected output volumes for the next three months — which measures confidence in the manufacturing, retail and services sectors — fell to -28 from -24, its lowest level since December 2025.

Comparison with Other Business Surveys

The survey followed last week's S&P Global business surveys that showed the steepest downturn since January 2023 underway in the services sector, the growth engine of Britain's economy.

Labour Market and Salary Trends

A separate survey from online jobs portal Adzuna showed job vacancies rose for a fourth month running.

Key Statistics and Sector Performance

  • The CBI's gauge of growth for the past three months fell to -34 in June from -31 in May, the lowest reading since March
  • Output volumes in the services sector "fell significantly", the CBI said—with consumer-facing and business services sub-sectors both struggling
  • Adzuna said advertised salaries dropped by 0.2% on the month, but were 3.8% higher than a year ago
  • Graduate salaries were down 42% year-on-year, the sharpest drop on record
  • The CBI Growth Indicator covered 848 companies from May 26 to June 12.
Survey Methodology

The CBI Growth Indicator covered 848 companies from May 26 to June 12.

(Reporting by Andy Bruce; editing by Suban Abdulla)

Key Takeaways

  • CBI’s expected output volumes gauge for the next three months slumped to –28 in June, the lowest since December 2025, underscoring growing pessimism across manufacturing, retail and services sectors (Reuters; CBI survey).
  • S&P Global’s flash Services PMI fell to 48.7 in June – the steepest contraction since January 2023 – signaling deepening weakness in the UK’s services sector, the economy’s key engine (S&P Global data).
  • Despite the gloom, job vacancies rose for a fourth straight month, though graduate vacancies and advertised salaries remain under pressure, with graduate roles dropping to record lows and starting pay shrinking sharply year‑on‑year (Adzuna data).

Frequently Asked Questions

What does the latest CBI survey reveal about UK companies' growth expectations?
The CBI survey shows UK companies' expected output volumes for the next quarter fell to their lowest level in 2025, indicating increased pessimism.
Which sectors are most affected by the decline in business confidence?
The services sector, including both consumer-facing and business services sub-sectors, experienced significant downturns in output volumes.
How have UK job vacancies and salaries changed according to recent surveys?
Job vacancies rose for the fourth consecutive month, but advertised salaries dropped by 0.2% monthly with graduate salaries down 42% year-on-year.
How many companies participated in the latest CBI Growth Indicator survey?
The CBI Growth Indicator covered responses from 848 UK companies between May 26 and June 12.
What is the significance of the CBI growth indicator's latest reading?
The June CBI growth indicator fell to -34, the lowest since March, reflecting a marked drop in UK business optimism.

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