UK Consumer Services Sentiment Hits 15 Month Low
A Confederation of British Industry survey shows sentiment among UK consumer services firms has fallen to its lowest point since February 2025. Rising costs and falling profits are forcing companies to scale back investment and reduce headcount as inflation concerns weigh on demand.
United Kingdom consumer services sentiment fell to -49 in May, the lowest level since February 2023. This marks a 4-point drop from February as business services morale also reversed its recent recovery. Investors face a deteriorating demand backdrop as rising costs force firms to cut headcount and capital spending.
### Profitability Hits Multi-Year Lows Consumer services firms saw profitability fall at the fastest pace since August 2020. CBI economic surveys and data manager Charlotte Dendy said costs rose faster than the ability of firms to increase prices. Business and professional services optimism also tumbled to -46 in May from -3 in February.
