Business confidence has significantly decreased again in Q2 2026, back to its second-lowest score in over a decade
The MarketVue Business Confidence Index from Savanta – GB (Survey Period: 24th March 2026 – 23rd June 2026, Savanta) saw a significant decrease this quarter by 2 points from 30 in Q1 2026 to 28 in Q2 2026, remaining in a low position of general economic confidence.
Confidence decreases for all business sizes
In Q2 2026, confidence significantly decreased for large businesses of £1m+ turnover at 30 (-4 points) and established businesses with turnover up to £1m at 27 (-2 points). Start-ups at 30 (-4 points) also saw a decline.
Confidence decreases slightly for most UK regions
Business confidence decreased in 5 of 6 regions in Q2 2026, with Scotland seeing the only increase, of 1 point. The biggest change was within the Wales/Southwest region (-4 points). There is not a large difference in scores between regions, with the Scotland region appearing to be slightly more positive with an index score of 30.
By sector, confidence is generally much lower across the board
Confidence decreased in 8 out of 9 industry sectors after improvements in the previous quarter. Seeing the biggest decreases were the Transport sector (-12 points), Education (-10 points) and Construction (-5 points) sectors. The decreases in confidence for Construction and Transport were both significant.
Other Services, Wholesale, Business Services and Production also saw small decreases in Q2 2026. Agriculture was the only sector to see a slight increase (+2 points).
Confidence has decreased among all ages
Confidence has also decreased for all age groups in Q2 2026, with significant quarterly changes for the over-65s (-5) and the 35-64’s (-1)
Commenting on the findings, Helen Davey, Director at Savanta, said:
“The recovery in business confidence seen in Q1 has proved short-lived. In Q2 2026, confidence fell back to the second-lowest reading in more than a decade – underlining just how fragile sentiment remains among British businesses. Declines across most business sizes, regions and sectors point to a broad-based deterioration rather than an isolated shift, with Transport, Education and Construction seeing the sharpest setbacks.
The wider economic picture helps explain this renewed caution. The Bank of England has noted that business confidence measures have fallen since the escalation of tensions in the Middle East, with geopolitical instability continuing to weigh on inflation and the broader outlook, while expectations are that UK growth slowed in Q2 after a stronger start to the year.
Taken together, these pressures suggest that businesses are still operating in an environment where positive momentum is easily knocked off course. Unless broader economic conditions become more stable, this quarter’s decline may be less of a blip and more of a sign that subdued confidence is becoming the norm”.
View the infographic
About MarketVue Business Confidence
Quarterly findings are from Savanta’s MarketVue Business Confidence programme conducted among 2562 GB businesses from start-ups to companies with £1bn turnover, surveyed between 24th March 2026 and 23rd June 2026.
Indices are mean scores based on a scale of ‘extremely positive’ (100), ‘fairly positive’ (75), ‘neither positive nor negative’ (50), ‘fairly negative’ (25) and ‘extremely negative’ (0), for the question “How do you feel about the current health of the UK economy?”
For more information, get in touch with the team.