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ICAEW Business Confidence Monitor

UK nations and regions

Q1: Business confidence recovery thwarted by Iran war.

Access the latest Q1 regional and sectoral reports below.

Nations and regions

Stylised thistle illustration representing Scotland.
Scotland

Q1: Scottish business confidence lifts into positive territory but Iran war poses significant risks to the outlook.

Stylised red dragon illustration representing Wales.
Wales

Q1: Confidence improves but remains in negative territory in Q1 2026 as Iran war raises risks to the outlook.

Illustration of Big Ben representing London.
London

Q1: London business confidence rises into positive territory as concerns about the tax burden ease.

Illustration of Blackpool Tower representing North West England.
North West

Q1: North West businesses remain the most confident in the UK despite a slight dip.

Illustration of the Angel of the North representing North East England.
North East

Q1: Business confidence lifts into positive territory but remains short of historical norm.

Stylised white rose illustration representing Yorkshire.
Yorkshire & Humber

Q1: Sentiment climbs out of negative territory, but the Iran War poses a significant threat to the outlook.

Abstract illustration representing the West Midlands region.
West Midlands

Q1: Confidence improved further but remains in negative territory amid the Iran conflict.

Abstract folded illustration with chart lines representing the East Midlands.
East Midlands

Q1: East Midlands businesses are the most pessimistic in the UK as confidence stalls deep in negative territory.

Stylised crab illustration representing the East of England.
East of England

Q1: Some improvement but business confidence remains deeply negative.

Illustration of Stonehenge representing South West England.
South West

Q1: Confidence digs deeper into negative territory and slips below the UK average.

Illustration of the White Cliffs of Dover representing South East England.
South East

Q1: Confidence in the South East remains negative amid slowing domestic sales growth.

Sectors

Illustration of a hammer made from charted material representing the construction sector.
Construction

Q1: Construction remains among the most pessimistic sectors as business challenges mount.

Illustration of a fuel pump made from charted material representing the energy sector.
Energy, Water & Mining

Q1: Confidence improves significantly in Q1 2026, though the Iran war poses a significant risk to sentiment.

Illustration of an industrial robotic arm made from charted material representing the manufacturing sector.
Manufacturing & Engineering

Q1: Business sentiment finally moves into positive territory, but uncertainty remains.

Illustration of a shopping bag made from charted material representing the retail sector.
Retail & Wholesale

Q1: Retail & Wholesale confidence remains deeply negative as higher labour costs pose a major challenge.