Key facts
- UK business confidence fell to its lowest level since April 2025 in September.
- Optimism about the wider economy dropped 18 points to +31%.
British firms' confidence fell to its lowest level since April 2025 in September, according to a Lloyds Bank survey. Executives' views on the global economic outlook also darkened due to rising energy prices and increased global uncertainty.
The sharp decline in business confidence signals growing caution among UK firms regarding future demand and economic conditions, potentially impacting investment and hiring decisions.
British firms' confidence declined significantly in September, reaching its lowest point since April 2025, according to a survey by Lloyds Bank. The monthly business confidence index fell by 12 points to +41%, below its 12-month average of +47%.
This decline was primarily driven by a drop in economic optimism, with executives citing higher global energy prices and increased global uncertainty, including the Iran war, as key factors. Optimism about the wider economy specifically decreased by 18 points to +31%, which is six points below its 12-month average.
Furthermore, firms' outlook on their own trading activity also weakened, falling 8 points to +50%, indicating increased caution about future demand and business activity. Despite the overall dip in confidence, the percentage of firms planning to increase prices in the next year saw a slight rise.
The survey was conducted by Ipsos between September 2 and September 16, polling 1,200 British businesses with annual sales of at least £250,000.
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