What: BCG's annual survey reveals growing disconnect between UK business leaders' company-specific optimism and broader economic concerns for 2025.

Why it is important: This divergence in sentiment could impact pricing strategies and consumer spending patterns, particularly as 75% of businesses plan price increases.

The BCG survey reveals 83% of business leaders expressing confidence in their own prospects despite growing concerns about the broader economy. Companies demonstrate resilience through maintained employment plans and increased technology investment, while facing challenges from rising costs and tax pressures. The survey indicates 75% of businesses plan price increases, though at a lower rate than previous years, with 41% focusing on cutting non-essential costs. Only 13% plan to halt investment, and there's increased interest in technology adoption. This measured approach reflects a pragmatic response to market challenges while maintaining growth initiatives. The findings suggest businesses are adapting their strategies to navigate economic uncertainties while preserving operational momentum.

IADS Notes: Recent market analyses from January 2025 show global economic growth projections of 2.8% , providing context for UK business sentiment. This aligns with trends seen in the retail property sector, where Hammerson reported a 4.2% increase in UK mall values  in March 2025, suggesting underlying market strength despite challenges. However, February 2025 data indicates declining consumer confidence , creating a complex operating environment for retailers balancing growth ambitions with market realities.

State of UK business 2025: confidence at a crossroads