Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Business insights and impact on the UK economy – Full Analysis.
3. Financial performance
Turnover
Trading businesses were asked how their turnover in August 2025 compared with July 2025, excluding any seasonal trading.
Figure 1: 12% of trading businesses reported an increase in their turnover in August 2025 when compared with the previous calendar month
Impact on turnover, businesses currently trading, weighted by count, UK, 1 March 2022 to 31 August 2025
Source: Business Insights and Conditions Survey from the Office for National Statistics
Notes:
- Data are plotted in the middle of the period of each wave.
Download this chart Figure 1: 12% of trading businesses reported an increase in their turnover in August 2025 when compared with the previous calendar month
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Approximately 12% of trading businesses reported an increase in their turnover in August 2025 compared with the previous calendar month, down 4 percentage points from July 2025. This was the lowest proportion since the question was introduced in March 2022. A fall in the proportion of trading businesses reporting an increase in their turnover was observed in 10 of the 14 industries that are sampled in BICS.
Conversely, 28% of trading businesses reported a decrease in their turnover, up 4 percentage points from July 2025 and in line with the largely upward trend seen from March 2025 (22%).
The education industry had the highest proportion of trading businesses reporting a decrease in their turnover, at 41%. This is likely because of seasonal patterns of activity for businesses within this industry.
Turnover challenges
Trading businesses were asked what challenges, if any, were impacting their turnover in early September 2025.
Figure 2: Economic uncertainty (28%) was the most commonly reported challenge impacting businesses’ turnover in early September 2025
Turnover challenges, businesses currently trading, weighted by count, UK, 19 April 2022 to 14 September 2025
Source: Business Insights and Conditions Survey from the Office for National Statistics
Notes:
- Data are plotted in the middle of the period of each wave.
- For presentational purposes, some response options have been removed.
Download this chart Figure 2: Economic uncertainty (28%) was the most commonly reported challenge impacting businesses’ turnover in early September 2025
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In early September 2025, 28% of trading businesses reported that economic uncertainty was having an impact on their turnover, this is up 3 percentage points from early August 2025 and has consistently been the most reported challenge since October 2022.
Competition was the second most reported challenge (22%), up 6 percentage points from early August 2025; this was the highest proportion recorded for this response option since the question was introduced in April 2022. The wholesale and retail trade industry reported the highest proportion of businesses reporting this as a challenge (33%).
For trading businesses with 10 or more employees, the cost of labour (36%) was the most reported challenge. Although broadly stable with early August 2025, this has been the most reported challenge since November 2024.
It should be noted, however, that 31% of all trading businesses and 20% of trading businesses with 10 or more employees indicated that they were not currently experiencing any turnover challenges in early September. This is a decrease of 2 and 3 percentage points, respectively, from early August.
Turnover expectations
Trading businesses were asked what their expectations were for their turnover in October 2025.
Approximately 1 in 6 (16%) trading businesses reported that they expect a decrease in turnover in October. Conversely, 16% of trading businesses reported that they expect an increase in turnover. These are both broadly stable with expectations for September.
The education industry reported the highest proportion expecting an increase in turnover (26%), while the accommodation and food services industry reported the highest proportion expecting a decrease (32%).
Further details on financial performance, including all response options broken down by industry and size band, are available in our accompanying dataset.