Business Confidence in the UK Declines in September, According to Lloyds Bank

01 Oct, 2023

Business Confidence in the UK Declines in September, According to Lloyds Bank

In September, British business confidence experienced a decline as optimism regarding the economic outlook waned, according to a survey released on Friday. The Lloyds Bank Business Barometer, which surveys approximately 1,200 companies across various sectors, dropped to 36%, down from August's 18-month high of 41%. Although presenting a less pessimistic view than other indicators such as the S&P Global PMI, the Lloyds barometer's decline aligns with other signals of an economic slowdown, a concern highlighted by the Bank of England as it opted to maintain interest rates last week.

Hann-Ju Ho, a senior economist at Lloyds Bank Commercial Banking, suggested that the Bank of England's decision after the survey could bolster business confidence in the coming months. He remarked, "Despite the uncertain economic environment with inflation and interest rate pressures, the recent decision by the Bank of England is likely to aid businesses in feeling more upbeat about the future."

More detailed information regarding Britain's recent economic performance is expected at 0600 GMT when the Office for National Statistics releases comprehensive growth data for the second quarter. While Lloyds noted a slight increase in its gauge of pricing expectations in September, intentions for hiring cooled. The proportion of companies planning salary increases declined, although it remained in line with the year's average.