The latest Business Insights and Conditions Survey (BICS) from the ONS, covering data collected between 6 and 19 April 2026, paints a challenging picture for the UK economy as businesses grapple with declining revenues and escalating cost pressures.

Turnover Slump Hits Trading Sector

Nearly a quarter (23%) of trading businesses experienced a month-on-month drop in turnover for March 2026, highlighting ongoing fragility in domestic demand and trading conditions. This figure underscores broader economic headwinds, including subdued consumer spending and supply chain disruptions that have lingered post-pandemic.

Energy Prices Fuel Business Anxiety

Energy costs have emerged as a dominant concern, with two-thirds (66%) of businesses reporting at least some level of worry in early April 2026—a significant 11 percentage point increase from late March. The alarm is particularly acute among larger firms: over three-quarters (76%) of businesses employing 10 or more staff expressed concerns, up 2 points from the prior period.

Moreover, 30% of respondents described themselves as very concerned about energy prices, marking a 6 percentage point rise that signals potential for further cost pass-through to consumers and squeezed profit margins.

Implications for Policy and Outlook

• The BICS results, from Wave 154, represent final data and offer a timely snapshot ahead of official GDP figures.
• Persistent energy fears could amplify inflationary pressures, complicating the Bank of England's monetary policy decisions.
• Larger businesses' heightened vulnerability points to risks for employment and investment if global energy markets remain volatile.

Economists warn that without mitigation measures—such as targeted subsidies or accelerated renewable energy rollout—these trends may deepen the slowdown in business activity. The ONS data serves as a critical barometer for policymakers navigating a precarious recovery.