Across all private enterprises, optimism remains strong. Eighty seven percent of leaders are confident about growth in the next 12 months, and four-fifths expect revenues to rise. Businesses continue to pursue new products, enter new markets and invest in technology at pace. The spirit is forward looking, but there is a noticeable recalibration.
Leaders are still ambitious, but the exuberance of the previous year has moderated. The share of leaders describing themselves as ‘very confident’ has softened (from 59% to 41%), reflecting a more pragmatic reading of a subdued UK economic outlook. Demand, while still a key driver, has become less predictable, falling from 52% last year to 45% this year as a source of confidence.
In response, businesses are broadening their horizons, with 70% increasing their appetite for international markets. Western Europe remains the top destination, but Asia is also rising, supported by new trade agreements. North America continues to feature prominently, demonstrating that even with tariff changes, the US remains ‘too large a market to ignore’.
Meanwhile, technology and AI have cemented their place as the over- riding investment priority, with 77% of leaders planning to invest and a clear focus on data quality as the gateway to effective AI deployment. Leaders are increasingly intent on process improvement, efficiency gains, sharper insights and better decision making, but with a mature mindset focused on value- adding deployments rather than hype- driven experimentation.
Yet risks have not receded. Cyber risk has increased for 69% of leaders, and almost half report rises in broader operational and reputational risks. The environment remains ‘fast moving and unpredictable, and this risk- laden context is shaping how leaders prioritise resilience, governance and continuity.
