UK economic outlook improves but firms wary of investment, BCC says
The BCC said growth will be driven by consumer spending as business investment falls 0.2% this year and inflation peaks at 3.6%.
- On Tuesday, the British Chambers of Commerce raised Britain's 2026 growth forecast to 1.0%, slightly above its previous projection of 0.9% made in June.
- Britain's economy withstood initial impacts from the Iran war, though firms remain wary about investment, which is set to fall by 0.2% this year.
- Higher household energy costs from the Iran war and potential food price increases due to summer drought are driving inflation, with unemployment forecast to reach 5.0% by year-end.
- "Businesses have absorbed another major geopolitical shock and shown real resilience," said David Bharier, the BCC's deputy director of economics and insights; growth remains subdued and relies on consumption, not investment.
- Inflation is anticipated to peak at 3.6% this year, while unemployment is forecast to hit 5.4% in 2027 and youth joblessness is expected to reach a high of 17.6%.
6 Articles
6 Articles
UK economic outlook improves but firms wary of investment, BCC says
Britain's economy is set to grow a bit faster than previously expected in 2026 after withstanding the initial impact of the Iran war but firms remain wary about investment, the British Chambers of Commerce said on Tuesday.
UK economy stuck in ‘slow lane’ as business investment to slump
A slump in business investment will drag on the UK economy’s potential for growth over the rest of the year as industry chiefs warned that the country was stuck in the “slow lane”. The British Chambers of Commerce has warned that the UK economy is set for a slowdown in momentum over the remaining two [...]
UK in 'slow lane' as growth is impacted by high costs
The UK’s growth looks set to be stuck in the “slow lane” as high costs imposed by the Labour government and the war with Iran weigh on business investment, writes John-Paul Ford Rojas. The British Chambers of Commerce (BCC) predicts that the economy will expand by a sluggish 1pc this year. It is only a […]
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