The Institute of Chartered Accountants in England and Wales said on Thursday that its quarterly Business Confidence Monitor had been on course to turn positive for the first time since 2024 over the first three months of 2026.
But it fell from +2.8 on the eve of the conflict to -1.1 by the end of the 10-week survey on March 16.
“The first quarter was a tale of two halves for the UK economy as the early-year optimism was dramatically snuffed out as the Middle East conflict refuelled fears over skyrocketing cost pressures and wider economic conditions,” Suren Thiru, chief economist at the ICAEW, said.
Below are other key points from the survey:
* Confidence has fallen for five quarters in a row, thelongest run of downturns in more than six years * Businesses are concerned about inflation, higher energycosts and supply chain disruption due to the Iran conflict * More than half worried about labour costs as Britain’sminimum wage rises and 35% of firms cited concerns about energyprice volatility * Domestic and export sales expectations for the coming 12months edged down while expectations for the pace of increasesin selling prices held at a historically high pace * 1,000 accountants took part in ICAEW’s survey betweenJanuary 12 and March 16
(Reporting by Suban Abdulla)
