Business confidence in the UK rose to its highest level since April 2017 as businesses become increasingly optimistic in their trading prospects.
According to the Lloyds Business Barometer, confidence increased by six points to 36% in August, while overall economic optimism also climbed 6%, following a slight dip in July. The Lloyds Business Barometer also showed that pay growth expectations reached a three-year high, with over a third of UK businesses expecting rises of at least 2% over the coming 12 months.
Companies expecting a 3%-plus wage growth jumped by five points to 17%, hitting a record level since the bank first asked the question back in 2018. However, the net balance of companies expecting to up their headcount remains at 18%, the same level as last month.
Lloyds’ findings demonstrate that confidence has increased in 9 out of the 12 regions and nations of the UK. The North West was up 26 points to 64%, while the East of England was up 14 points to 39%. Scotland also saw increases in confidence, up 34%, while Wales saw an increase of 19%.
