Growth outlook affected by weak business investment

The latest economic forecast published by the British Chambers of Commerce (BCC) has revealed that the growth outlook for the UK has been affected by weak business investment.

2 Sep 2026

The latest economic forecast published by the British Chambers of Commerce (BCC) has revealed that the growth outlook for the UK has been affected by weak business investment.

According to the BCC, GDP in 2026 is expected to grow by 1.0% (compared with 0.9% in the previous forecast), then 1.0% in 2027, rising to 1.3% in 2028.

The BCC expects inflation to peak at 3.6% by the end of the year, easing to 2.3% by the fourth quarter of 2027.

It also anticipates that business investment will contract by 0.2% in 2026 before recovering to grow by 0.4% in 2027.

Commenting on the forecast, David Bharier, Deputy Director of Economics and Insights at the BCC, said: 'Our latest forecast paints an uncertain outlook for the UK economy. Businesses have absorbed another major geopolitical shock and shown real resilience. 

'But growth remains subdued, and rests on consumption, not investment. Net trade is also a drag in every single year of the forecast.'