UK C-suite barometer: 2026 mid-year insights

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UK C-suite barometer: 2026 mid-year insights

9 June 2026
Diversification emerges as the critical condition for growth

At the start of the year, our C-suite barometer showed businesses embracing change – prioritising investment in technology and people while reshaping strategies to stay competitive.

Six months on, diversification has emerged as a central theme for growth. Across sectors and regions, leaders are responding to ongoing volatility by spreading risk rather than relying on single bets whether in operations, business models, expansion plans or funding. We’re also seeing resources shift in response to global events, with investment redirected and trade priorities adjusted.

Despite the challenging environment, confidence in growth remains resilient and market conditions are still viewed positively. However, this optimism is being driven less by external factors and more by deliberate shifts in strategy. As confidence in managing major trends declines and investment decisions become more cautious, strategies built on concentration are rapidly losing favour.

Drawing on insights from more than 100 UK leaders, our mid-year survey explores the trends reshaping business strategy and what leaders are doing now to prepare for what’s next.

Focus on UK growth continues

At 92%, positive expectations for growth remain unchanged in our latest survey results. This signals the sustained ambitions of C-suite leaders despite a more volatile environment. Confidence, however, has dropped by eight percent to its lowest level since 2021. This collapse highlights the sharp rise in trends impacting businesses including energy prices, geopolitical uncertainty and supply chain disruption. Crucially, the loss of confidence is broad based, spilling across every external and operational trend.
92%

remain positive about growth

35%

confident managing key trends (down eight points)

62%

boosting investment (down seven points)

At the start of the year, AI was the dominant trend impacting businesses, sitting within a wider transformation agenda focused on reshaping business models in response to economic pressures and rising competition. While AI remains a key priority, heightened instability in today’s environment has made many trends less predictable, pushing it down the agenda.

Leaders are now contending with a more complex mix of challenges, from geopolitical uncertainty to shifting energy dynamics. These pressures risk diverting focus from core priorities, namely harnessing AI to transform operations and addressing supply chain challenges critical to future growth.

Our C-suite barometer mid-year results at a glance

  • 1-Economic.jpg
    Economic factors, including inflation, has moved back into the top spot.
  • 2-AI.jpg
    AI remains high but is now overshadowed by global instability.
  • 3-Energy.jpg
    Energy prices and/or shortages has jumped into the top three after a 12-month reprieve.

Key takeaways

Capital and investment are on the move to avoid economic aftershocks

Investment levels as per our investment index remain high, but a slight dip (69% to 62%) signals a more cautious stance. Spending is shifting away from long-term priorities like talent and brand towards immediate needs such as supply chain resilience to manage disruption.

This pragmatic shift extends to growth strategies. Alliances and joint ventures are now marginally favoured over private equity, but both reflect a demand for flexibility, shared risk and access to capabilities beyond traditional balance-sheet expansion.

More than half of leaders have diversified resources in response to geopolitical pressures, far outpacing moves like offshoring or nearshoring. At the same time, rising costs are increasingly being passed on to customers, putting pricing power and loyalty under greater pressure.

Remapping operations, trade and expansion for favourable market conditions

C-suite leaders are reshaping operations and trade relationships. While the expansion plans identified at the beginning of the year remain in place, there is a clearer shift towards diversifying target markets, with more focus on domestic and neighbouring regions.

At the same time, Greater China, Latin America and Asia Pacific (including Australia) are key destinations for increased trade. Central and Eastern Europe also stands out as the only region attracting interest from both nearby and more distant markets.

AI enters its returns era revealing a variance from initial intent now to impact

Businesses are now seeing clearer, measurable returns from AI investment, which is helping leaders better define success, from initial ambition through to tangible impact. The focus is shifting towards external outcomes such as productivity gains and improved customer experience, with less emphasis on internal adoption than six months ago.

While the goal remains better decision-making and competitive advantage, C-suite leaders are no longer relying on a single path to achieve it.

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