Burnham not behind UK business confidence bounce, IoD says

Key facts

• Industry leaders state Andy Burnham has not driven the recent rise in business confidence.
• The Institute of Directors' main business confidence reading improved from -63 in July to -49 in August.
• Confidence in bosses' own organisations declined slightly.
• Improved confidence is linked to better international growth and business resilience.
• A Lloyds Bank survey indicated business optimism at its highest level since March.
• The CBI reported that private sector pessimism has faded, with growth expectations least negative in two years.

Industry leaders have stated that Andy Burnham's political influence has not been the driving force behind a recent increase in business confidence. The Institute of Directors (IoD), a prominent lobby group representing thousands of firms, reported that its main measure of business confidence regarding the UK economy's prospects improved from a net score of -63 in July to -49 in August. However, a separate reading on bosses' confidence in their own organisations saw a slight decrease, falling by three points to -5 last month.

Anna Leach, chief economist at the IoD, commented that while some businesses appreciated a change in the government's tone and the devolution agenda, many remained concerned about unfunded spending commitments and the potential for further tax increases. She suggested that the improved confidence is more likely a reflection of better international growth and overall business resilience.

A separate survey by Lloyds Bank indicated that business optimism reached its highest level since March, with larger firms also suggesting they would implement lower price increases than previously anticipated, potentially easing inflation concerns. The Confederation of British Industry (CBI) echoed these sentiments, noting that pessimism in the private sector had diminished and that expectations for growth were the "least negative in two years," though the outlook varied across different sectors, with business and professional services showing more optimism than consumer-facing services.