Source: Sharecast
Publishing its latest growth indicator, the Confederation of British Industry said the balance of private sector companies expecting activity to fall in the three months to September was -18.
The print was an improvement on May’s low of -30. But it remains firmly in negative territory.
A balance is the weighted percentage of companies reporting an increase minus those reporting a decrease.
Business volumes were forecast to slide in the retail and wholesale sectors, with the -40 balance the weakest since September 2022.
Business and professional services also forecast a fall, with a balance of -10, as did consumer services, at -31. Overall, the service sector had a balance of -14.
Alpesh Paleja, CBI deputy chief economist, said: "While negative expectations for activity have eased a little, our surveys still point to challenging conditions for businesses.
"Firms cite a very mixed picture on activity. While there are pockets of strength in the economy, it’s clear that sizeable headwinds to growth remain.
"Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households, and increasing global uncertainty.
"The recent volatility in global oil prices is also one to keep an eye on, given its scoop to exacerbate costs and inflationary pressure."
The growth indicator is a composite measure of activity based on responses to CBI’s long-running industrial trends, distributive trades and service sector surveys.
A total of 742 firms responded to the three surveys between 27 May and 13 June.