Latest news with #LloydsBusinessBarometer
Business Times
2 days ago
- Business
- Business Times
UK business confidence hits 9-month high in boost for Starmer
[LONDON] A gauge of UK business confidence rose to a nine-month-high, climbing back to a level not seen since Prime Minister Keir Starmer first took power, as markets rebounded and trade tensions eased with the US. The Lloyds Business Barometer sentiment gauge rose to 50 in May, the highest since August, according to a survey released on Friday (May 30). The 11-point jump erased the drop seen in April, when US President Donald Trump's tariff hikes sowed turmoil in financial markets and darkened the economic outlook. The jump is the latest evidence of the UK economy's resilience in the face of still-elevated inflation and the lingering risks posed by shifting US trade policies. The economy expanded during the first quarter at the fastest pace in over a year and retail sales are booming, in a positive shift for the Labour government, whose warnings of tax hikes and budget cuts unnerved businesses and consumers late last year. 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter,' said Hann-Ju Ho, senior economist at Lloyds Commercial Banking. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.' The survey, conducted from May 1-16, followed the market rebound that came after Trump paused some of his tariff increases in order to pursue negotiations with trading partners. It also came as the UK on May 8 said it reached the basic outline of a deal with the US that would lower levies on British cars and eliminate them on aluminium and steel, softening the prospective hit to those industries. The Lloyds survey echoes S&P Global's PMI report, which showed that sentiment for the year ahead climbed to the highest in five months in the wake of the UK-US agreement. Most of the rebound came from the services sector, however, while manufacturers continued to report shrinking demand for their exports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lloyds' survey also showed that businesses are more upbeat about their own trading prospects and the economic outlook. Confidence among construction businesses climbed to a nine-month high. Sentiment improved across most UK regions, with Northern Ireland, the East Midlands and the South West posting the largest gains. Business inflation expectations also came down in May, thanks to fewer firms planning to push up prices over the next year. The decline reversed April's uptick, when a wide range of cost increases, from food to basic bills, sent the pace of inflation to the highest in over a year. Lloyds' gauge of expected staffing levels rose, suggesting more firms are looking to expand headcount, while the number of employers forecasting pay growth of at least 3 per cent also ticked up. BLOOMBERG
Bloomberg
3 days ago
- Business
- Bloomberg
UK Business Confidence Hits 9-Month High in Boost for Starmer
A gauge of UK business confidence rose to a nine-month high, climbing back to a level not seen since soon after Prime Minister Keir Starmer first took power, as markets rebounded and trade tensions eased with the US. The Lloyds Business Barometer sentiment gauge rose to 50 in May, the highest since August, according to a survey released Friday. The 11-point jump erased the drop seen in April, when US President Donald Trump's tariff hikes sowed turmoil in financial markets and darkened the economic outlook.
Daily Mail
3 days ago
- Business
- Daily Mail
Business confidence hits nine-month high in May as 40% of firms say they'll hire more staff
A survey of business owners showed that confidence increased to a nine-month high in May, as financial markets recovered and trade tensions calmed. Lloyds bank's latest Lloyds Business Barometer shows a jump of 11 points to 50 per cent, the highest point since August 2024. In April the index, which surveys 1,200 firms with annual turnover above £250,000, had recorded a 10-point drop. Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said there had been a 'sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.' As a result, some 40 per cent of businesses said they expect to increase their staffing levels, up three points from April, while 34 per cent said they expected pay growth of three per cent or higher. Ho added: 'Equally as encouraging is the fact that trading prospects, wage expectations and hiring intentions also saw improvements this month. 'The positive trends in these metrics are important signals for potential growth and resilience in the business community and the wider economy.' This boost came after economic optimism also increased, rising 16 points, while trading prospects also grew amid signs of progress in global trade agreements. The service sector reached its highest confidence point for the past year, passing 54 per cent, while construction hit a nine-month high of 56 per cent. Manufacturing rose two points to 40 per cent. Retail slumped, however, falling five points to 40 per cent, its lowest point since January. The rise in business confidence was seen across the UK, with nine of the UK's twelve regions seeing stronger confidence, most prominently in Northern Ireland, the East Midlands and the South West. In particular, the East Midlands saw its highest levels of business confidence since 2018, reaching 66 per cent for May. Paul Kempster, managing director for commercial banking coverage, Lloyds Business and Commercial, said: 'The jump in business confidence for our regions and nations is encouraging. 'It's great to see that across many metrics, businesses are more hopeful for the future and are backing themselves for success in 2025. 'As business confidence regains, we are committed to support businesses with a range of financial services to help them to seize opportunities and achieve their growth ambitions.'
