BRITAIN’S private sector is bracing for the sharpest slowdown since Covid hit in 2020 as bosses pull back on hiring and investment.
A new Confederation of British Industry survey of 909 firms shows recruitment plans turned negative late last year and have been weak ever since.
Activity is expected to decline for at least the next three months, extending a downturn which has lasted more than a year.
Manufacturing and distribution are among those expecting the biggest hit.
Consumer services are also under pressure as firms grapple with rising costs and less demand.
The UK went into recession in August 2020 after shops and firms went into lockdown during the Covid pandemic.
The latest CBI survey was done between October 24 and November 13. Alpesh Paleja, the confederation’s deputy chief economist, said uncertainty ahead of the November Budget caused many businesses to pause decisions, while “persistent cost pressures” have dogged companies throughout the year.
The labour market is already cooling. The unemployment rate rose to 5 per cent in the three months to September, up from 4.3 per cent a year earlier.
Vacancies fell to 723,000 in the three months to October, down from 822,000 a year before.
The Treasury said: “The Budget doubled down on our work to grow the economy and create good jobs.”
‘A.I. BUBBLE’ IMPACT FEAR
COMPANY stock valuations in the UK are close to being the most stretched since the 2008 financial crisis, the Bank of England has warned.
Share prices, particularly for tech firms focused on artificial intelligence, remain “materially stretched”.
The Bank’s Financial Stability Report found that risks to stability increased in 2025, with investor concerns on a threat of an artificial intelligence bubble burst.
Deeper links between AI firms and the credit market means instability risks impacting the wider economy, it said.
SEA & GRAND
ONLINE holiday firm On The Beach has reported an 11 per cent rise in pre-tax profits to £27.9million for the year to September 30.
Some 1.7million customers booked with the group, with underlying profits up 20 per cent to £35million in the same period.
Winter bookings are up 15 per cent and next summer’s by eight per cent. Boss Shaun Morton said: “Bookings give us confidence we will deliver another record summer.”
A GROUT POUT
TOPPS TILES has revealed slower growth at the start of the financial year — while announcing it has bought collapsed rival Fired Earth for £3million.
The tile retailer said group sales were up 3.3 per cent in the past nine weeks — a dip on the 5.3 per cent growth reported in the year until September.
The group said recent sales “moderated due to weaker consumer confidence”.
