Lloyds Bank Reports Decline in UK Business Confidence for September

29 Sep, 2023

Lloyds Bank Reports Decline in UK Business Confidence for September

In September, British business confidence experienced a decline, reflecting a diminishing optimism regarding the economic outlook. According to the Lloyds Bank Business Barometer, which surveys approximately 1,200 companies across various sectors, the confidence level dropped to 36%, down from the 18-month high of 41% recorded in August.

This decline, while not as pessimistic as some other economic indicators such as the S&P Global PMI, aligns with other signals indicating a slowdown in the economy. The Bank of England also acknowledged this economic deceleration by keeping interest rates unchanged in its recent decision.

Hann-Ju Ho, a senior economist at Lloyds Bank Commercial Banking, noted that the Bank of England's decision, made after the survey was conducted, could potentially boost business confidence in the upcoming months. Ho stated, "Although the economic environment remains uncertain, with pressures from inflation and interest rates, the recent decision by the Bank of England is likely to instill a more positive outlook among businesses for the future."

Further insights into Britain's recent economic performance will be available at 0600 GMT when the Office for National Statistics releases comprehensive growth data for the second quarter.

While Lloyds Bank reported a slight increase in its gauge of pricing expectations in September, there was a cooling in hiring intentions. Additionally, the proportion of companies planning to raise salaries decreased, although it remained around the average level for the year.