Key facts
- UK business confidence reached its highest level since March in August.
- The Lloyds Bank Business Barometer increased by 4 points to 53%.
- Optimism regarding the wider economy rose to 49%.
- Confidence in businesses' own trading outlook improved to 58%.
- The proportion of firms planning price increases fell to 51%.
British businesses expressed their highest level of confidence since March in August, according to a survey by Lloyds Bank. The monthly business confidence index rose by 4 points to 53%, surpassing its 12-month average of 47%. This improvement is attributed to a more optimistic view of the broader economy and stronger customer demand.
Optimism about the wider economy specifically increased by 7 points to 49%, significantly above its 12-month average of 37%. Confidence in businesses' own trading outlook also saw a slight rise of 2 points to 58%, marginally above its 12-month average of 56%.
Furthermore, the percentage of firms planning to increase prices in the coming year fell to its lowest point since 2022, dropping 3 percentage points to 51%. These findings align with recent data from S&P Global, which indicated the fastest growth for British businesses in six months, suggesting a general improvement in the economic landscape.
The Lloyds data is based on a survey conducted by Ipsos involving 1,200 British companies with annual sales of at least £250,000.