UK trading businesses report mixed turnover performance in Dec 2025

Around 32 per cent of trading businesses in UK have reported a fall in turnover in December 2025 compared with the previous month, up four percentage points from November but broadly in line with typical seasonal trends, signalling a cautious end to 2025 for businesses, according to the latest Business Insights and Conditions Survey (BICS). In contrast, 13 per cent recorded an increase, a share that remained largely unchanged on a month-on-month (MoM) basis.

Looking ahead, sentiment showed modest improvement. One in five businesses expect turnover to decline in February 2026, five percentage points fewer than in January and the same level as February 2025. Meanwhile, 16 per cent anticipate an increase, up three percentage points from the previous month, the Office for National Statistics said in a press release.

Economic uncertainty remained the most cited challenge affecting turnover in early January 2026, reported by 31 per cent of trading businesses, though this was slightly lower than in early December. For firms with 10 or more employees, the cost of labour was the dominant concern at 36 per cent, remaining broadly stable.

UK trading businesses ended 2025 cautiously, with 32 per cent reporting a fall in turnover in December, while 13 per cent saw growth, according to the Business Insights and Conditions Survey.
Outlook improved slightly for February 2026 as fewer firms expect declines.
Economic uncertainty and labour costs remained key challenges, while price pressures and worker shortages showed signs of stabilising.

Price pressures persisted but showed little acceleration. About 26 per cent of businesses reported higher input prices in December 2025, similar to November levels, while 9 per cent increased prices charged, a trend broadly stable since May 2025. Looking ahead, 21 per cent expect selling prices to rise in February 2026, down slightly from January expectations.

Labour market pressures eased marginally. In early January 2026, 16 per cent of larger businesses reported worker shortages, the lowest level since the measure was introduced in October 2021.

The figures are based on final results from Wave 148 of BICS, conducted between January 5 and 18, 2026.

Fibre2Fashion News Desk (SG)