Nearly a quarter (23%) of trading businesses in the UK reported that their turnover had decreased in March 2026 when compared with February, according to the Office for National Statistics (ONS) Business Insights and Impact on the UK Economy bulletin released today.This figure represents a 2 percentage point decrease from February but aligns with seasonal patterns observed in prior years.

Persistent Turnover Pressures

The ONS survey, covering early April 2026 responses, indicates ongoing challenges for the business sector. While the proportion of firms reporting declining turnover improved slightly month-on-month, forward-looking expectations remain cautious: 16% of trading businesses anticipate a turnover decrease in May 2026, stable from April projections.

This data underscores a fragile recovery environment, where modest improvements coexist with broader economic headwinds affecting liquidity and revenue generation across sectors.

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—an 11 percentage point increase from late March.

• Larger firms, those with 10 or more employees, showed heightened vulnerability, with 76% expressing concern, up 2 points from the prior period.
• Very high concern levels spiked to 30%, a 6 percentage point rise, signalling potential impacts on investment and operational decisions.

These trends highlight energy prices as a critical drag on business confidence, exacerbating turnover pressures and prompting calls for targeted government support, as previewed in upcoming parliamentary questions on business operating costs.

Implications for Policy and Markets

The findings come amid heightened scrutiny of the UK economy, with the Prudential Regulation Authority (PRA) today outlining its 2026/27 business plan focused on financial safety, soundness, and policyholder protection. While not directly addressing turnover or energy issues, the PRA's emphasis on proportionate regulation could influence lending conditions for affected businesses.

Analysts will watch how these indicators shape fiscal responses, particularly as Parliament addresses energy support and operating costs this week. The ONS data provides a timely snapshot of resilience tested by persistent cost-of-living and input price challenges.