Lloyds: 37% of UK Firms Experience Supply Chain Disruption

Lloyds Bank's Business Barometer survey, which spans companies from all regions and sectors and is made up of 1,200 UK firms, found that the most frequently cited consequences of the recent worldwide uncertainty were rising costs (45%) and supply chain disruption (37%).

Overall, more than half (57%) of firms surveyed said that they had felt the effects of an unpredictable global landscape, which can be seen as a remnant of geopolitical fragmentation, tariffs and tensions. 

It's not all negative sentiment for businesses in the UK however, as despite feeling the effects of the volatility, they remain largely positive about this year's prospects.

Business optimism despite economic uncertainty

Asked at the start of May (30 April – 18th May 2026), UK businesses indicated that in the face of the increased cross-border pressure, more than half (57%) are still optimistic, predicting growth this year.

Meanwhile, more than four-fifths (84%) feel confident in their ability to withstand economic shocks, showing a resilient approach to planning around unpredictability. In addition, almost six in 10 UK companies surveyed are adjusting their strategy in response to global economic conditions and uncertainty.

Popular actions to tackle the unpredictability of the current global landscape include upping inventory levels (35%) and locking in commodity, raw material or input prices (35%). The most popular measure overall was predictably introducing cost-saving tactics (57%), with UK businesses looking to streamline operations and mitigate future economic shocks.

“What we're seeing from businesses is not just resilience, but decisive action in the face of ongoing uncertainty,” says Amanda Murphy, CEO for Lloyds Business and Commercial Banking uncertainty.

“Across sectors like manufacturing, logistics and food production, companies are taking practical steps to protect their operations – increasing inventory and locking in costs where they can.”

Volatility strategies for the future

For those firms looking to futureproof from further disruption, three-quarters (75%) of UK businesses surveyed in the first few weeks of May believe they have the financial tools and support required to counter this incoming volatility. 

Among the UK companies that believe they have the right financial support in place, the most used financial strategies to manage volatility include cashflow forecasting (46%), working capital facilities or overdrafts (30%) and interest rate hedging (19%).

Confidence overall from UK businesses saw a month-on-month improvement between April and May, from 44% to 47%, which was due largely to firms' own activity expectations. Economic optimism, meanwhile, was only up two points to 35%, which suggests a cautious approach by UK businesses to the wider economic environment. Survey responses note “ongoing uncertainty and cost pressures” as reasons for caution.

Long-term resilience for UK businesses

Putting technical support in place to increase resilience could be a reflection of the same cautious approach that many feel in general towards the global economy.

“Many also recognise that global supply chain challenges and energy market volatility are structural issues, not temporary blips,” says Amanda.

“In response, businesses are managing costs, securing supply and building greater resilience into their operating models. That puts greater focus on working capital and funding, but it also reflects a confidence. Firms are backing their ability to navigate uncertainty and continue to grow.”