Key facts
- UK business confidence fell 3 points to +44 in June, below its 12-month average of +47.
- Confidence in the wider economy dropped 4 points to +31, lower than the 12-month average of +38.
- Firms' optimism about their own trading outlook decreased 2 points to +56, near its 12-month average of +57.
- Manufacturing confidence fell 10 points to +33, well below its 12-month average of +46.
- Hiring intentions for the next 12 months rose for the first time in three months.
British businesses' confidence in the economic outlook declined in June, according to a survey by Lloyds. The overall confidence index fell by 3 points to +44, below its 12-month average of +47. Confidence in the wider economy also decreased by 4 points to +31, lower than its 12-month average of +38. However, firms' optimism about their own trading prospects remained relatively strong, decreasing only slightly by 2 points to +56, close to its 12-month average of +57. A significant portion, 64%, of firms still expect stronger output in the coming year.
The manufacturing sector experienced a more pronounced downturn, with confidence falling by 10 points to +33, significantly below its 12-month average of +46. Despite these broader concerns, hiring intentions for the next 12 months rose for the first time in three months.
The survey, which polled 1,200 businesses with annual sales of at least £250,000, was conducted by Ipsos between June 1 and June 15.