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UK Business Confidence Rises to Five-Month High

Stronger customer demand alongside weaker price-setting intentions points to firmer growth with lower near-term inflation pressure.

Overview

  • Lloyds Bank’s monthly Business Barometer rose four points in August to a headline reading of +53%, the highest level since March.
  • Firms’ optimism about the wider economy climbed to +49% and their own trading outlook rose to +58%, according to the Ipsos survey of 1,200 companies used by Lloyds.
  • The share of businesses planning to raise prices in the next 12 months fell three percentage points to 51%, its lowest level since 2022.
  • The national improvement masks sharp regional swings, with confidence down 15 points in Yorkshire to 46%, down 30 points in the North East to 45%, and down 10 points in the West Midlands to 47%.
  • Lloyds executives said stronger demand is supporting firms’ hiring and investment plans and the survey, which has run monthly since 2002, aligns with S&P Global data showing faster business growth this month.