Business News Round Up (21/07/25)
UK consumer confidence falls for the first time since Q3 2022
Consumer confidence fell by -2.6 percentage points in the second quarter of 2025, representing the first marked decline in confidence since October 2022, when inflation peaked at its highest rate in 40 years, and the lowest confidence level since Q1 2024. This was driven by a decline in all six measures of confidence of the Deloitte Consumer Tracker index, which is based on responses from 3,200 UK consumers aged 18+ between 13 and 16 June 2025. Sentiment towards job security saw the biggest decline (-4.8 percentage points) as well as consumer confidence about job opportunities and career progression (-3.9 percentage points) following the increase in employer costs and weakening of the labour market. Consumers’ confidence about their level of debt also fell -3.7 percentage points, although remains above levels seen at the same time a year ago.
New data shows first half fall in take-up of North West industrial and logistics space
Take-up of industrial and logistics space in the North West (units of 100,000 sq ft+) reached around 1.29 million sq ft in the first half of 2025, which represents a 7% drop on the first half of last year, and a 36% decrease on the long-term first half average, largely as a result of delayed decision making arising from ongoing economic and political uncertainty. Data from Savills’ latest Big Shed Briefing shows that, from an occupier perspective, wholesale retailers accounted for 31% of take-up, followed by food producers at 29%, manufacturers at 24% and 3PL firms at 7%, with the remainder spread out across a range of sectors including high street retail. The firm notes that the relatively high proportion of space taken by manufacturers emphasises the rising domestic manufacturing needs amid geopolitical tensions. Looking at the breakdown of space transacted, second-hand space accounts for the majority (79%) of take-up.
Profit warnings rise amid geopolitical tensions
The number of profit warnings issued by public companies rose by 20% to 59 in the second quarter of 2025, according to research amid growing concerns over international tensions. Geopolitical uncertainties were named as a key factor behind nearly half (46%) of warnings to investors. EY, which has compiled the data for 25 years, said this was the highest percentage recorded for those mentioning this issue. Industrial support services and retail sector companies were responsible for a large number of the warnings in the second quarter, registering eight and four profit warnings respectively. Businesses have faced an increase in labour costs this year after the rise in national insurance contributions for employees in April, which coincided with increases to both the national minimum wage and the national living wage. There was a rise in profit warnings after the US threatened to impose wide-ranging tariffs on imports in April.
Poorly designed offices cost UK economy over £7bn a year
Poorly designed and inadequately maintained workplaces are draining the UK economy of more than £71 billion a year, according to new research from Mitie. A survey of 3,000 UK employees reveals that workers are losing on average, 68 minutes each week to minor but recurring inefficiencies—such as trying to find a meeting room with reliable internet access or waiting for slow lifts. These seemingly small frustrations, when scaled across the entire UK workforce, are costing employers an estimated £485.2 million in lost salary productivity every week. Over the course of a year, this translates to a staggering £71.4 billion. The findings point to a critical link between the quality of workplace design and employee performance. 51% of respondents cited a poorly maintained workplace as one of the leading causes of job dissatisfaction. Conversely, 88% said a safe and functional working environment directly contributed to their overall job satisfaction.
https://bmmagazine.co.uk/in-business/poorly-designed-offices-cost-uk-economy-over-71bn-a-year