UK Economy Expected to Grow but Investment Remains Wary

The British Chambers of Commerce (BCC) has revised its forecast for the UK economy, predicting a growth rate of 1.0% in 2026.

This is slightly better than the previous forecast of 0.9% growth made in June.

However, business investment is expected to fall by 0.2% this year, with a smaller drop than previously anticipated.

The main drivers of inflation are higher household energy costs caused by the Iran war and the risk of rising food prices due to a drought this summer.