The Office for National Statistics (ONS) has updated its insight into business habits and the impact they have on the UK economy.
The latest ONS data paints a mixed picture for both small and larger scale businesses in the UK, with the pressures retailers are facing showing no signs of letting up.
While 16% of trading businesses reported that their turnover had increased in July 2025, compared with the previous calendar month, and was broadly stable from June, in contrast, 24% reported their turnover had decreased, also broadly stable over the same period.
Around one in seven (15%) trading businesses reported said they expect their turnover to decrease in September 2025, decreasing by 5% compared with expectations for August.
In comparison, 15% reported that they expect their turnover to increase, broadly stable with expectations for August.
Economic uncertainty was the most reported challenge affecting turnover for trading businesses in early August, at 25%, down 7% from early April (32%). For businesses with 10 or more employees, the most commonly reported challenge was the cost of labour at 36%, down 6% over the same period.
In addition to these pressures, around a quarter (25%) of trading businesses reported an increase in the prices of goods or services bought in July of this year when compared with the previous month - broadly stable with June but down 7% from April.
Sadly it doesn’t stop there - around one in eight (12%) of trading businesses expect the prices of goods or services they sell to increase further through September, down 12% from April (24%), and 22% of all businesses and 37% of businesses with 10 or more employees cited labour costs as a reason for considering price rises.
To compound the above issues, 17% of businesses with 10 or more employees reported they were also experiencing worker shortages in early August, which is broadly stable with early July and has steadily declined since early June 2022 (36%).
To read the report in full, click here.
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