**British Companies Report Lowest Growth Expectations This Year**
British companies have expressed their lowest growth expectations for the upcoming quarter, according to a recent survey released by the Confederation of British Industry (CBI). The CBI's gauge of expected output volumes for the next three months has dropped to -28, down from -24, marking the lowest level recorded this year and the weakest since December 2025.
This decline in growth expectations aligns with a series of pessimistic business sentiment readings that have emerged recently. The CBI's survey, which encompasses insights from 848 companies conducted between May 26 and June 12, highlights significant concerns across key sectors, including manufacturing, retail, and services.
The downturn in expectations follows last week's findings from S&P Global business surveys, which indicated that the services sector—the backbone of the British economy—is experiencing its steepest downturn since January 2023. The CBI reported that output volumes in the services sector have "fallen significantly," with both consumer-facing and business services sub-sectors facing notable challenges.
In addition to the declining growth expectations, the CBI's gauge of growth for the past three months has also seen a decline, falling to -34 in June from -31 in May. This marks the lowest reading since March, further underscoring the challenging economic landscape for British businesses.
Compounding these issues, a separate survey conducted by online jobs portal Adzuna revealed that job vacancies have increased for the fourth consecutive month. However, the labor market is also showing signs of strain, as advertised salaries have decreased by 0.2 percent month-on-month, despite being 3.8 percent higher than the same time last year. Notably, graduate salaries have plummeted by 42 percent year-on-year, representing the sharpest decline on record.
As businesses navigate these turbulent conditions, the outlook remains uncertain. The combination of declining growth expectations, falling output volumes, and a struggling services sector raises questions about the resilience of the British economy in the face of ongoing challenges.