The UK hotel, catering, and retail industries are under the greatest pressure from rising labor and energy costs.

Ask AI · How does the rise in labor costs affect the UK’s economic recovery?

Under the influence of rising labor and energy costs, the UK’s hotel, catering, and retail industries are hit hardest.

The latest quarterly economic survey released by the British Chamber of Commerce shows that in the first quarter of this year, although there were some signs of a slight recovery among UK businesses, entrepreneur confidence remains fragile. 49% of surveyed companies expect their turnover to increase in the next 12 months, 31% expect it to stay the same, and 20% expect it to decline. Confidence is lowest among retail and catering businesses. 39% of catering companies expect growth in turnover, while 27% expect a decline; 41% of retail businesses expect growth, and 29% expect a decline.

The main factors contributing to the lack of confidence among UK entrepreneurs are rising labor and energy costs. 85% of hotel and catering businesses say labor costs are the primary pressure on operating expenses. Due to Middle Eastern conflicts, rising energy prices have also sparked new concerns among entrepreneurs. (Xinhua Finance)