UK-listed companies issued 65 profit warnings in the three months to end of September, the highest level in two years, according to consultancy EY-Parthenon.
The surge in warnings comes as the war in the Middle East drives up business costs ahead of Finance Secretary John Healey's budget statement to Parliament. EY-Parthenon, which tracks companies quoted on the London stock market, found the increase represents a sharp rise in corporate caution about financial performance.
The timing matters. Companies typically issue profit warnings when they expect earnings to fall short of previous guidance. A cluster of warnings before a major government budget can signal broader economic strain. The Middle East conflict has disrupted supply chains and pushed up energy and shipping costs for many sectors, compounding existing inflationary pressures.
The data offers a snapshot of business sentiment in the UK ahead of policy announcements that could reshape the fiscal landscape. Whether the warnings reflect temporary disruptions or longer-term headwinds remains unclear from the available information.