Profit warnings from UK travel, leisure, and housebuilding firms have reached their highest level in nearly four years, driven by the economic fallout from the conflict with Iran.
The surge in corporate caution highlights how geopolitical instability is translating into tangible financial headwinds for consumer-facing sectors.
This follows recent results from Berkeley Group, the UK’s largest residential developer, which reported annual pretax profits that missed market expectations.
According to a new report by EY-Parthenon, the spike in alerts is being fueled by a combination of falling bookings and soaring operational costs.
The travel and leisure sector, which had been showing signs of recovery, is seeing renewed pressure as consumer confidence wavers and supply chain disruptions linked to the Middle East conflict drive up prices.
The housebuilding sector is also contributing significantly to the rise in warnings.
This follows recent results from Berkeley Group, the UK’s largest residential developer, which reported annual pretax profits that missed market expectations.