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The Guardian - UK
The Guardian - UK
Business
Joanna Partridge

UK economy entering 2026 amid sharp private sector downturn, says CBI

CBI United Kingdom Economy Adzuna
the tall towers of the City of London in silhouette as the sun sets
The City of London skyline, home to the UK services sector. The CBI surveyed more than 900 firms in the week after the autumn budget. Photograph: Toby Melville/Reuters

Business leaders have warned that Britain is entering 2026 amid a sharp economic downturn in the private sector, after companies “put the brakes on” investment and hiring before the autumn budget.

In a gloomy snapshot after months of tax speculation, the Confederation of British Industry (CBI) said private sector output was on track to fall in the fourth quarter of 2025.

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