What the SME CEOs Are Thinking About the UK Economy
Vistage, the world‑class CEO mentorship crew, just dropped the latest quarterly data on how small‑to‑medium business owners feel about the future. Here’s the short, sweet, and sometimes cheeky recap.
Confidence Surging (and Some Fears)
- Overall optimism in the UK and Ireland jumped to 111.6 points, up 3.9 from Q1.
- Almost 44 % of these execs expect the economy to keep getting better.
- Only 15 % see a downturn on the horizon – enough to keep everyone a little on edge.
Sales & Profit Expectations
- 62 % think sales will climb next year; only 30 % think it’ll stay flat.
- Half (50 %) feel confident profits will also improve.
- Over 42 % are ramping up investment to tap into future demand.
Interest Rates Are Mostly “Fine” for Now
While banks are pushing rates up, 47 % of owners say it’s not hurting them yet. The rest are still sitting on the fence.
Inflation: The Labour Cost Virus
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<li 66 % pin inflation on rising labor costs.
- In the next year, 42 % expect inflation to run a bit slower.
- Only 40 % are giving staff a pay bump under 10 %.
- A minority saw no change (15 %) or downgrades (3 %) in salaries.
AI‑Adoption: A Cautious Take
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<li 35 % experiment with AI in certain tasks.
<li 12 % actually use AI every day.
<li 33 % are spending extra on tech to get AI ready.
<li Over half (52 %) keep their tech budget flat.
Staffing & Upskilling with AI
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<li 47 % have not changed staff numbers or training because of AI.
<li 35 % are actively training existing employees.
<li 11 % are tweaking roles to include AI functions.
<li 10 % are creating fresh positions or teams specifically for AI.
Word From the Top
Andy Perkins, the MD of Vistage International Operations (UK), says:
“Even with rising labor costs, inflation, and AI zooming through, UK and Irish SMEs are showing real resilience. It’s all about staying sharp, investing in tech, and upskilling the crew to keep ahead of any political or economic shake‑ups, especially with the July 4th election looming.”
That’s the pulse: keep your eyes on the money and your head eye open for the next wave of change.
