The latest release from the Office for National Statistics (released 23rd July 2026) provides a snapshot of the conditions UK businesses are operating in this summer.
The figures cover turnover, business challenges, prices and energy costs, offering an insight into the pressures businesses are navigating and how they are viewing the months ahead.
The latest release is based on the final results from Wave 160 of the Business Insights and Conditions Survey, which was live between 6th and 19th July 2026. Here are some of the findings that stood out to us.
Some businesses are still seeing growth in turnover
More than one in six trading businesses, 17%, reported that their turnover had increased in June 2026 compared with the previous month. For businesses with 10 or more employees, that figure was higher, at 28%, representing a six percentage point increase over the same period.
This provides a positive signal within the latest data, although it sits alongside continued pressure on businesses costs and future expectations.
Economic uncertainty and labour costs remain significant challenges
Economic uncertainty was the most reported challenge affecting turnover among trading businesses overall, cited by 32% of respondents. However, for businesses with 10 or more employees, the cost of labour was the most reported challenge, at 36%.
The difference is worth noting. The pressures facing businesses vary according to their size and circumstances, with the cost of labour particularly prominent among larger employers.
Looking ahead, expectations remain cautious
The latest data also points to caution around the coming month. While 13% of trading businesses expected turnover to increase in August 2026, 18% expected it to decrease. The proportion expecting turnover to decrease was four percentage points higher than expectations for July.
This suggests that many businesses are making decisions against a backdrop of uncertain demand, rather than having a clear view of what the next few months will bring.
Costs continue to influence business decisions
The wider cost environment remains another important part of the picture. 30% of trading businesses reported an increase in the prices of goods and services they bought in June 2026, while 59% expressed some degree of concern about energy prices in early July. The survey also found that 24% of trading businesses were considering raising their prices because of energy prices, an increase of 10 percentage points compared with August 2025.
For employers, these pressures form part of the environment in which decisions about recruitment, staffing and workforce structure are being made.
What could this mean for employers?
The ONS findings provide useful context for the decisions businesses are making, but there is no single workforce response to the pressures they highlight.
An organisation experiencing sustained growth may need to recruit permanently, while a business facing fluctuating demand may need greater flexibility. Elsewhere, the priority may be to understand whether the existing workforce is being used as effectively as possible before making further staffing decisions.
For us, the important question is not simply whether a business needs to recruit, it is whether its workforce is set up to support the business it is operating today and the one it is trying to build next. That might mean recruiting permanently, using temporary workers to respond to changing demand or taking a closer look at the skills and capacity already within the organisation.
The ONS data reinforces why those decisions need to be made in the context of the wider business environment. When turnover, labour costs, energy prices and future demand are all influencing how businesses operate, workforce planning cannot sit separately from the rest of the business strategy.
The right approach will look different for every organisation. Understanding that is the starting point. Our Swift teams offer a free Workforce Audit; take a look to see if it would help you and your recruitment needs.
Source: ONS Findings