Britain’s largest business lobby, representing 190,000 firms
PMI data show UK services and manufacturing activity contracting in June, with the composite index dipping to 49.4, suggesting the economy has stagnated in Q2. Manufacturing and services face rising costs amid Middle East tensions and policy pressures.
Private credit funds have seen significant redemption requests in Q1 2026: Blackstone reported nearly 8% of investors asking for cash, while Apollo, Ares and Blue Owl have seen double-digit outflows. Managers are blaming news "noise," but withdrawals are resembling a slow-motion run that will increase liquidity stress on funds.
British firms expect to ease price increases as energy-driven costs fade, while manufacturing activity shows a rebound. Bank of England watchfulness continues as inflation risks persist and rate decisions loom.
Several UK reports show business leaders warning against further taxation while stressing the need to back scaling firms. The government faces the challenge of sustaining growth in a fragile economy amid Middle East conflict spillovers and inflation pressures.
New data show the UK economy has cooled after a stronger start to 2026, with April GDP expected to slip as higher fuel costs damp demand. Retail sales have fallen, and experts warn the energy shock from the Iran conflict is weighing on households and firms. Analysts expect a continued slowdown into Q2.
The Confederation of British Industry has forecast higher unemployment and slower GDP growth, driven by global shocks and domestic cost pressures, with inflation edging up toward 4% by year’s end. The Bank of England is expected to hold rates at 3.75% for the rest of the year.
Flutter Entertainment has delisted its London Stock Exchange shares to concentrate on the New York market, citing low trading activity, higher costs, and regulatory obligations. The company moved its primary listing to NYSE in 2024 and will complete the London exit on 3 August. The move reflects London’s shrinking role in global listings amid broader US-listing trends.
Major central banks have held policy rates this week while signalling differing paths. The Fed has left its target at 3.5–3.75% under new chair Kevin Warsh and has tightened communications; the Bank of England has kept Bank Rate at 3.75% after a 7–2 hold vote; the Bank of Japan has raised its policy rate to a 31‑year high. Energy-driven inflation remains the common shock.