In August, 28 per cent of businesses with 10 or more employees said they were concerned that international conflict would affect their supply chains over the next year, while 21 per cent were concerned about shipping disruption. Both figures were broadly unchanged from July but were significantly higher than in September 2025, rising by 17 and 12 percentage points, respectively.
Concern over climate change-related supply-chain disruption also increased, with 13 per cent of businesses reporting concern in August, up from 9 per cent in July and 4 per cent in September 2025.
In August 2026, UK businesses reported elevated supply-chain concerns, with 28 per cent worried about international conflict and 21 per cent about shipping disruptions.
Concern over climate-related risks rose to 13 per cent.
Among affected firms, 53 per cent expected higher sourcing costs and 46 per cent higher transport costs, while energy and fuel price concerns remained high.
Among businesses concerned about supply-chain factors, 53 per cent expected sourcing material costs to increase, while 46 per cent anticipated higher transportation costs. Although both measures were broadly stable month on month, they were 5 and 12 percentage points higher, respectively, than in September 2025.
Energy and fuel prices remained another major cost concern. Around 59 per cent of businesses reported some degree of concern about energy prices in late August, while 63 per cent expressed concern about rising fuel prices. Both proportions were broadly stable compared with early August.
Meanwhile, labour-cost pressures showed some moderation. 38 per cent of businesses reported that staffing costs, including wages, bonuses, National Insurance and pension contributions had increased over the previous three months. This was 11 percentage points lower than a year earlier.
Only 16 per cent of businesses reported that employees’ hourly wages had increased in July 2026, down sharply from April. The ONS said the large fall was likely linked to the timing of the earlier survey, which was conducted shortly after the minimum wage increase at the start of the new financial year.
The figures come from Wave 163 of the Business Insights and Conditions Survey (BICS), covering responses collected between August 17 and 30. The survey examined business conditions including supply-chain risks, energy and fuel prices, staffing costs, worker shortages, homeworking and the impact of US tariffs.
The latest data suggest that geopolitical tensions, logistics disruption, climate risks and input costs remain important considerations for UK businesses, even as some labour-cost pressures have eased.
For retailers, manufacturers and sourcing companies, the continued rise in concern compared with 2025 highlights the importance of monitoring supplier networks, transportation costs and alternative sourcing routes.
Fibre2Fashion News Desk (CG)
