UK Profit Warnings Hit 25-Year High Amid Policy Shifts and Consumer Caution
Sixty-four UK companies issued profit warnings in Q3 2023, with 47% citing policy changes and global instability as primary drivers—the highest proportion recorded in over 25 years. Nearly a third flagged delayed or canceled contracts, while 22% pointed to tariff impacts. Consumer sentiment mirrored this strain: September retail sales growth slowed to 2.3% year-on-year, down from August's 3.1%, as inflation and fiscal uncertainty pushed households toward essentials.
Retailers attributed the pullback to a 'perfect storm' of stubborn price pressures, volatile weather, and looming tax reforms. One in four consumers is now deferring discretionary spending ahead of Chancellor Rachel Reeves' November budget—a litmus test for the government's ability to reconcile growth stimulus with green investment pledges.
