According to a new survey by the owners of the company, business confidence reached its lowest level on records last month.
data The Institute of Directors (IOD) revealed that the firms stated that high labor costs had been the greatest contributor in increasing pessimism about the economy.
Industry Group’s Monthly Economic Confidence Index, which measures the business leader optimism about the possibilities of the UK economy, posted a minus 74 reading for September.
This marked a significant decline from Minus 61 and reached the lowest level as the index was launched more than nine years ago.
The previous record was a reading of Minus 72 recorded in July this year, facing concerns over trade tension.
In latest research, business owners also saw an increase in cost expectations for reading plus 89 amid increase in inflation.
About 83% of the surveyed leaders linked the deteriorating approach to high labor costs, while the supply chain inflation and energy costs were also exposed as important factors.
Labor Cost jump for many firms after April Government National minimum wage increased and National Insurance contributions (NICS) for businesses.
IOD chief economist Anna Lach said: “The confidence of trade dropped the new depth in September after a fleeting improvement in summer tag-end in September.
“Conditions across the board deteriorated, with cost expectations, a record was high, which was particularly operated by the cost of employment. Investment hopes declined again, although in November 2024, the recent was at least a few.
“Meanwhile, the expectations of the headcount continue as the effect of April increases in employment taxes and the residence of the living wages, with future concerns on employment rules, continues to rebirth in companies.”
Shadow Chancellor Sir Mail strid Said: “Professional belief is not vivid by global uncertainty, but intentionally shattered by the government’s intentional options.”