Confidence has fallen to minus 5, reflecting an ongoing drop in confidence over the last year, and the first time the figure has hit negative territory since the pandemic. The seriousness of the situation is highlighted by the significant drop since it was measured at 47 a year ago, found ICAEW’s Business Confidence Monitor (BCM) for Q2 2022.

Amid rising costs, significant skills shortages, and tax and transport challenges, businesses have faced slower domestic sales growth and weakened confidence.

The report factors various economic conditions, which are expected to be even tougher in the year ahead, with energy costs set to soar for businesses.