Heat altering the behavior of U.K. businesses and consumers, says Barclays

Barclays' latest survey reveals that the scorching heat waves experienced this summer have had a noticeable impact on both businesses and consumers in the United Kingdom. The extreme temperatures have led to a significant shift in investment plans and daily routines for many.

A staggering 60% of companies surveyed are either investing in or planning to invest in technologies designed to adapt to the increasingly frequent and intense heat waves. These measures aim to help businesses cope with the growing operational challenges posed by the extreme weather. On the consumer front, temperatures above 25.1 degrees Celsius were found to be too hot for shopping, while temperatures exceeding 24.2 degrees Celsius prompted consumers to avoid commuting.

The record-breaking summer in the UK has seen five consecutive heat waves, with temperatures soaring above 38 degrees Celsius at times. This heatwave frenzy has taken a toll on productivity, particularly affecting the farming and construction sectors. Beyond the immediate effects on productivity, the intense heat has also exposed the vulnerability of Britain's critical infrastructure to rising temperatures, with schools, hospitals, and public transport systems struggling to cope.

Climate change plays a crucial role in this scenario, as increasingly regular and intense heat waves are directly linked to the rising levels of greenhouse gases from fossil fuels. The summer of 2026 is expected to be even hotter than the record-breaking summer of 2025, with scientists predicting that long-lasting, intense heat waves could become the norm, with temperatures reaching as high as 45 degrees Celsius by the 2050s.

Barclays' survey highlights the implications of these frequent and extreme heat waves on economic parameters such as consumer spending and business revenues. The survey found that 28% of businesses have introduced employee well-being measures such as additional breaks to combat the heat, while 23% have adopted flexible or remote work options, and 21% have adjusted working hours. These adaptations are aimed at mitigating the impact of extreme heat on employee productivity.

Among the findings, a 4.3% increase in cash flowing into Barclays accounts of corporate clients specializing in air conditioning was observed between the second quarter of this year and the same period last year. The survey, conducted among 1,000 senior business decision-makers, was based on an analysis of hundreds of millions of customer transactions and a survey of 2,000 consumers conducted by Opinium Research on behalf of Barclays.