UK business optimism reaches 16-month high in February survey in World Economy News 12/03/2026 UK companies reported stronger expectations for business activity over the next 12 months in February, with confidence reaching its highest level since October 2024, according to the S&P Global UK Business Outlook survey released Wednesday. The net balance of UK firms anticipating increased activity levels over the next 12 months rose to +36% in February, up from +33% in October 2025 and +25% a year earlier. The UK’s reading exceeded the global developed markets figure of +29%. The survey was conducted between February 10 and 25, with results calculated before the outbreak of war in the Middle East. Manufacturing firms showed the strongest improvement in sentiment, with a net balance of +45% for future activity expectations, compared to +34% among services companies. Manufacturers cited stronger exports, business expansion plans, product innovation, AI investment, cost cutting initiatives and defence spending as growth drivers. Service providers pointed to market expansion, product diversification and AI spending as key factors, though tax-raising measures, low consumer confidence and competitive pressures continued to affect sentiment. Profit expectations also strengthened, with the net balance of firms forecasting earnings increases rising to +13% in February from +5% in October 2025. Manufacturing profit expectations reached +23%, while services firms reported +11%. UK companies predicted a sharp increase in business costs over the next 12 months. The net balance of firms anticipating higher staff costs remained at +70% in February, while the net balance for non-staff costs stood at +52%. Manufacturers’ cost expectations excluding staff reached their strongest level since October 2022, linked to supply chain disruptions, volatility in metal markets and geopolitical tensions. Companies planned to continue cost-cutting efforts, with anticipated reductions in capital expenditure and research and development spending. The net balance for R&D spending stood at -8%, while capex expectations registered -2%. Manufacturing showed slight positivity for capex with a net balance of +1%. Employment expectations remained positive but weak, with a net balance of +7% for staffing expansion over the coming year, below the long-run trend. Manufacturing hiring predictions reached +14%, compared to +5% in services. Businesses planned steep increases in selling prices to support profit growth. David Owen, Senior Economist at S&P Global Market Intelligence, said UK companies displayed more hope for economic and business conditions in 2026 after showing modest confidence in 2025. He noted that the outbreak of war in the Middle East could shift the outlook, with UK firms particularly exposed to higher global energy prices. Source: Investing.com 2026-03-12 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script'