The UK private sector is facing a stark "twin-track" reality. Boosted by the summer heatwave and England’s World Cup run, consumer card spending just hit its fastest growth pace in 11 months, temporarily lifting the hospitality and retail sectors.
However, beneath the surface, mid-sized companies are struggling to turn these rising revenues into actual profits. Fresh data from the Price Bailey Mid-Market Index shows that while average business revenue grew by 12%, median growth sits at just 6%. With inflation lingering at 5.3%, the typical UK firm is experiencing zero real-terms expansion.
An ongoing energy shock—which has left UK industrial electricity prices 45% higher than the G7 median—along side rising financing costs, is eating away cash reserves. Experts warn that four in ten businesses are scaling back or freezing expansion investments entirely to preserve vital cash flow.
