UK Trades Sector Shows Rising Optimism in July
05 August 2025Trade Direct Insurance Releases Latest Business Barometer
Posted by:
Patricia Gardiner
Sales and Marketing Director, Trade Direct Insurance
Trade Direct Insurance has released its July 2025 edition of the Trades Business Barometer, revealing a notable uptick in optimism among UK tradespeople and small business owners.
The Trades Business Barometer is a monthly economic index tailored for UK tradespeople and trade business owners/ investors.
It evaluates five core economic indicators: interest rates, material costs, fuel/energy prices, exchange rates and small business sentiment — scoring each from 0 to 10 to reflect how favourable conditions are for the trades sector.
While the Bank of England has kept interest rates steady at 4.25%, tradespeople are seeing some relief in other areas. Fuel prices have fallen 7%, material costs are stabilising, and a stronger pound (up 8% against the dollar) is easing the cost of imported tools and equipment. However, confidence among small businesses has seen a slight drop, with sentiment falling to -44 and pulling the sentiment score down to 3.5. Even so, with a Barometer Score of 6 out of 10 for July, the sector remains resilient, boosted by improving supply side conditions and a sense that the toughest challenges may be behind us.
Patricia Gardiner, Sales and Marketing Director at Trade Direct Insurance, commented:
“July’s Barometer reflects a turning point for UK tradespeople. With fuel costs down and material prices stabilising, we’re seeing renewed confidence across the sector. While interest rates remain a challenge, the overall sentiment is the most positive we’ve seen in over a year.”
July 2025 Snapshot
While the Bank of England has kept interest rates steady at 4.25%, tradespeople are seeing some relief in other areas. Fuel prices have fallen 7%, material costs are stabilising, and a stronger pound (up 8% against the dollar) is easing the cost of imported tools and equipment. However, confidence among small businesses has seen a slight drop, with sentiment falling to -44 and pulling the sentiment score down to 3.5. Even so, with a Barometer Score of 6 out of 10 for July, the sector remains resilient, boosted by improving supply side conditions and a sense that the toughest challenges may be behind us.
Note: Small Business Sentiment data for July was estimated due to data unavailability. The Barometer Score, including this estimate, is 6. Without the estimate, the score would have been 7.
About Trade Direct Insurance
Trade Direct Insurance is a leading UK provider of specialist insurance solutions for tradespeople, offering tailored cover for builders, electricians, plumbers, decorators, and over 70 other recognised trades. With more than 40 years of industry experience, we support thousands of small businesses with reliable protection and a commitment to simplicity and service.
About the author
Patricia Gardiner
Sales and Marketing Director, Trade Direct Insurance
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Patricia is a seasoned marketing and sales leader with nearly 25 years of global experience with the last 6 years in the insurance and financial services sectors. As Sales and Marketing Director at Trade Direct Insurance, Patricia leads the strategic direction of the company’s customer acquisition, retention, and brand development.