Business confidence in the UK continues to weaken, with British companies reporting their lowest growth expectations this year. The Confederation of British Industry (CBI) says its latest survey shows firms’ outlook for output volumes over the next three months drops to the weakest level recorded in 2026. Multiple sectors are described as taking a more cautious stance, including retailers, manufacturers and services businesses. The CBI’s growth indicator measures expected private sector activity, and the latest reading points to further contraction rather than expansion. According to the reported figures, the gauge of expected output volumes falls sharply into negative territory, indicating companies expect activity to decline over the coming quarter. The new survey result adds to a broader pattern of downbeat business sentiment readings released in recent weeks. Overall, the reports present a consistent picture: UK firms’ near-term expectations for growth weaken further, with expectations for output and private sector activity turning more negative for the period ahead.