UK-listed companies issued 65 profit warnings in the three months leading up to the end of September, according to consultants EY-Parthenon. This figure represents the highest level of warnings in two years.
The increase in warnings is attributed to a surge in costs for businesses, with the conflict in the Middle East cited as a significant factor. Rising costs were the leading factor for 35% of warnings, while 38% specifically mentioned the impact of the Middle East conflict.
Housebuilders have issued more warnings this year than during the 2008 financial crisis, with 14 warnings in 2026 so far. Meanwhile, average two-year fixed mortgage rates have risen to 5.55% in October, up from 5.29% last month.
Chancellor John Healey is expected to deliver a tax and spending statement on 28 October. Measures to help high street businesses with rising costs, including a cut to business rates for small companies, are reportedly being prepared for the budget.