Check out our response to the interest rate announcement 👇

www.cbi.org.uk/media-centre...

The Bank expects CPI inflation to have peaked (at 3.8% in September). Looking ahead, inflation is projected to slow over the forecast, gradually returning to 2% in mid-2027.

The Bank of England’s latest forecast expects economic activity to remain subdued, with GDP growth projected to be 1.5% in 2025, 1.2% in 2026, picking up to 1.6% in 2027 and 1.8% in 2028.

CBI Deputy Chief Economist @alpeshpaleja.bsky.social said “Uncertainty around the upcoming Budget is weighing heavily on sentiment, with many firms keeping key decisions on hold until more clarity is forthcoming”

🔗 To learn more, click here: www.cbi.org.uk/media-centre...

📊Firms expect to see further declines into early 2026:
• Business & professional services: -12%
• Consumer services: -28%
• Distribution: -34%
• Manufacturing: -19%

[Figures shown are net balances – the percentage of firms expecting an increase minus those expecting a decrease]

Weak consumer confidence and caution ahead of the Autumn Budget continue to weigh on the retail sector, according to our latest Distributive Trades Survey.

For a more detailed look at the October DTS data, check out our press release 👇
www.cbi.org.uk/media-centre...

Total distribution sales volumes (including retail, wholesale, and motor trades) continued to fall at a firm rate in the year to October. Firms expect the downturn to deepen next month.

Wholesalers reported another difficult trading month, with annual sales volumes falling at a fast rate in October. Sales are expected to decline at a slightly quicker pace next month.

Internet sales volumes grew slightly in the year to October but are expected to contract at a modest pace next month.

Retail sales for the time of year were seen as “poor” in October, to a similar extent as last month. Retailers expect sales to remain below seasonal norms in November.

September’s growth was largely driven by non-store retailers’ sales volumes, with sales volumes at a three-year-high. In particular, online jewellers reported strong demand for gold, while computer and telecoms sales also rose firmly, possibly boosted by new tech launches.

🏭For more information, check out our press release: www.cbi.org.uk/media-centre...

Numbers employed fell in the quarter to October, at the fastest pace in five years. Manufacturers expect another fall in employment in the quarter to January.

The main constraint on investment was uncertainty about demand, followed by inadequate net return, and a shortage of internal finance.

Investment intentions for the year ahead have deteriorated. Manufacturers expect to reduce investment in plant & machinery, in buildings, in product & process innovation, and in training & retraining.

Average costs rose in the quarter to October at an elevated pace. Costs growth is expected to remain historically strong in the quarter to January. Both domestic and export prices are anticipated to rise in the next three months at an above average pace.

Business sentiment deteriorated in October. Export optimism for the year ahead also declined further.