The latest findings from the Lloyds Bank Business Barometer reveal a modest yet notable development in the UK’s business landscape. Business confidence has exhibited a slight dip ahead of the Budget announcement, falling to its lowest level in three months. Despite this decline in overall sentiment, there is a faint silver lining for the job market as hiring intentions among employers have marginally increased. Specifically, 54% of firms now plan to expand their workforce within the next year, up from 53% in the previous month. Meanwhile, the percentage of businesses anticipating workforce reductions remains steady at 17%.
While business confidence has dropped three percentage points to 44%, it is still comfortably above the long-term average of 29%. Geography has played a role in this variance, with confidence levels rising in four out of twelve UK regions. Notably, the North East, London, and North West have shown the highest levels of optimism. Hann-Ju Ho, a senior economist at Lloyds Bank, emphasized that despite the dip, business sentiment remains higher than historical norms. This resilience is reflected in the rising hiring intentions among firms, suggesting that many are still confident in their trading prospects.
Regional and Sectoral Perspectives
Recent data from the Lloyds Bank Business Barometer shows a slight but noteworthy shift in the UK’s business climate. Business confidence has experienced a minor decline ahead of the Budget announcement, hitting its lowest point in three months. Despite this dip, a glimmer of hope exists for the job market, as hiring intentions have ticked up slightly. Currently, 54% of firms plan to grow their workforce in the next year, up from 53% the previous month. At the same time, the percentage of businesses expecting to cut staff holds steady at 17%.
Although business confidence has dropped three points to 44%, it remains significantly above the long-term average of 29%. Regional differences do exist, with confidence rising in four out of twelve UK regions. The North East, London, and North West have shown the highest optimism levels. Hann-Ju Ho, a senior economist at Lloyds Bank, highlighted that despite the decline, business sentiment is still stronger than historical norms. The resilience in hiring plans among firms indicates ongoing confidence in their trading prospects, reflecting an overall robust outlook despite challenges.
