UK Firms Struggle with Soaring Costs and Cautious Spending amid Economic Headwinds

UK businesses face second-highest economic distress levels in Europe amid high inflation and interest rates
Diminishing profitability primary concern for European companies as expenses rise faster than sales
Real estate sector faces most distress due to high costs and interest rates, followed by healthcare and retail
Red Sea crisis disruptions exacerbate trade and retail sector challenges, intensifying profitability fears
Despite slight inflation decline, retail and consumer sectors remain under pressure from hesitant spending and pricing difficulties