City AM EN

Business confidence slumps ahead of Spring Statement

Business confidence slumped back in February as directors’ frustration with the state of the UK economy grew, new research has shown.  The Institute of Directors’ latest business confidence survey has uncovered bosses’ exasperation with the UK economy and the level of employment taxes preventing them from taking on more workers. The IoD said its economic [...]

Mar 02, 2026 &03010202202631; 00:01 UTC www.cityam.com Trending 3/5

Read original on www.cityam.com ↗

↘

Negative for markets

Sentiment score: -70/100

Moderate impact Immediate effect (hours)

WHAT THIS MEANS

Business confidence in the UK has slumped in February, reflecting directors' frustration with the economy and high employment taxes, which may hinder hiring and investment. This negative sentiment could weigh on economic growth and asset performance ahead of the Spring Statement, potentially impacting UK markets and currency.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

British Pound / US Dollar

GBPUSDCurrency

Expected to decline

Slumping business confidence reduces investor appetite for GBP, as it signals economic weakness and potential policy uncertainty.

PRICE HISTORY

Loading chart...

⚡ SUGGESTED ACTION

Consider short positions on GBPUSD or reducing exposure to UK-related assets until confidence recovers or positive policy measures are announced.

KEY SIGNALS

Decline in business confidenceEmployment tax concerns

SECTORS INVOLVED

FinancialsIndustrials

Analysis generated on Mar 02, 2026 at 00:23 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by City AM. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Business confidence slumps ahead of Spring Statement

RELATED INTELLIGENCE