Overview

• The Confederation of British Industry’s July barometer shows private-sector activity contracting at its fastest rate since October 2020 and records a tenth consecutive month of negative business confidence.
• Companies surveyed by the CBI plan further reductions in headcount over the next three months, marking nearly a year of weak hiring intentions.
• A Lloyds Bank poll finds business confidence at a ten-year high, driven largely by a surge in optimism within the services sector.
• Household liquid savings rose by £8.8 billion in June, with consumers prioritizing saving over spending in response to economic uncertainty.
• Firms continue to cite higher employer National Insurance contributions, elevated energy prices, and global trade volatility as key pressures on performance.