The British Chambers of Commerce raised its forecast for UK economic growth in 2026 to 1.0%, from 0.9% in June, after the economy withstood the initial impact of the Iran war. The group said businesses remained resilient but cautious, with growth relying on consumption rather than investment. Business investment is expected to fall 0.2% this year, a smaller decline than the previously forecast 2.2% drop, before growing 0.4% in 2027. Inflation is forecast to peak at 3.6% by the end of the year, down from 3.8% in the previous forecast, driven mainly by higher household energy costs linked to the Iran war and the risk of rising food prices after a summer drought. Unemployment is projected to reach 5.0% by the end of 2026 and 5.4% next year, while youth joblessness is expected to peak at 17.6% in 2027. UK exports are forecast to grow 0.4% in 2026 as Middle East tensions ease, with faster expansion projected in 2027 and 2028.