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ICAEW Business Confidence Monitor

Q2: Confidence slumps to near four-year low as businesses nurse painful Iran war hangover

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National

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UK Business Confidence Monitor: National

  • Report
The latest national Business Confidence Monitor (BCM) shows that the Iran War significantly dented confidence as it dropped to a near four-year low and suffered its sixth successive negative quarterly score. Companies reported rising costs pressures, weaker expected sales and profits growth for the coming year, while late payment concerns hit a five-year high.
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How the government can enable growth Labour costs, energy and late payments are holding businesses back Autumn Budget 2025 About BCM and methodology

UK nations and regions

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Scotland

Q2: Business confidence in Scotland drops sharply into deep negative territory.

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Wales

Q2: Business confidence in Wales slumps amid concerns about labour and energy costs.

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England

Nine regional reports offer insight into business confidence across England. Find out more about your region.

Sectors

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Construction

Q2: Business confidence in Construction deteriorates amid rising costs and greater uncertainty.

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Energy, Water & Mining

Q2: Despite sentiment cooling slightly, the Energy, Water & Mining sector is still the most confident sector in the UK.

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Manufacturing & Engineering

Q2: Sentiment in Manufacturing & Engineering slides back into negative territory.

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Retail & Wholesale

Q2: Business confidence in Retail & Wholesale deteriorates as the Iran War weighs on the outlook.

International economic updates

Economic Update: Mainland China and South-East Asia

  • Report
The 2025 Q2 Economic Insight Report provides an analysis of the current trends and challenges facing the economies of China, Malaysia, and Singapore. China’s growth outlook is buffeted by the heightened trade tensions with the US, that could worsen existing domestic challenges and further push out the long-drawn property sector adjustment.
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A paper sculpture resembling the Great Wall of China, folded from sheets printed with economic graphs and trend lines, symbolising China’s economy and market volatility.

Economic Update: Middle East

  • Report
The ICAEW Economic Update: Middle East, is a quarterly economic forecast for the region prepared directly for the finance profession.
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