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UK business activity drops to four-year low in June: BDO
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Textiles
UK business activity drops to four-year low in June: BDO
14 Jul '26
2 min read
Pic: Generated by ChatGPT
Insights
UK business activity weakened sharply in June, with BDO's Output Index falling to 91.53 from 94.80 in May.
Manufacturing softened to 95.39 as earlier stockpiling and frontloaded orders across the second quarter began to unwind.
Subdued confidence, higher costs and weaker consumer demand point to cautious sourcing, investment and hiring decisions.
UK business activity weakened sharply in June as the recovery seen earlier in the year lost momentum, with BDO's latest
Business Trends
report showing its Output Index fell to 91.53 from 94.80 in May.
This was the lowest reading since February 2021, when the UK was experiencing its third COVID lockdown, BDO said in a release.
UK business activity weakened sharply in June, with BDO's Output Index falling to 91.53 from 94.80 in May.
Manufacturing softened to 95.39 as earlier stockpiling and frontloaded orders across the second quarter began to unwind.
Subdued confidence, higher costs and weaker consumer demand point to cautious sourcing, investment and hiring decisions.
The decline reflected weaker activity across both services and manufacturing, signalling a broader slowdown for companies selling into the UK market.
BDO's Services Output Index fell to 91.04, while the manufacturing reading dropped to 95.39 from 99.31 in May, as the support from precautionary stockpiling and frontloaded orders across the second quarter began to unwind.
Weak consumer demand, subdued business confidence and rising cost pressures combined to slow activity. Its Optimism Index remained below the 95-point threshold that separates growth from contraction for 20 consecutive months, while BDO's Inflation Index rose to 102.70, its highest level in more tha
