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Business Times
3 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
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Business confidence in Scotland ‘higher than UK average' in May
Confidence in Scotland rose 12 points during May to 52%, according to the Bank of Scotland's Business Barometer, compared to 40% in April. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down four points at 57%, optimism in the economy rose 29 points to 48%, which analysts said 'gives a headline confidence reading of 52%'. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence increased 11 points in May to 50% – its highest level since August 2024. READ MORE: Scotland's food and drink exports more than six times those of England per head 'Scotland's oldest whisky family' appoints new distillery chief Green light for new hotel at Scottish shopping centre site Firms' optimism in their own trading prospects strengthened six points to 56%, while confidence in the wider economy also climbed 16 points to 44%. In a six-month forecast, Scottish businesses identified target areas for growth as evolving their offering, for example by introducing new products or services (56%), investing in their team, for example through training (48%) and introducing new technology, for example AI and automation (36%). The East Midlands was the most confident region in May (66%), followed closely by the north-east of England (65%). Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: 'Scottish business confidence has not only continued to rise, but has now remained above the UK national average for a sixth month in a row. 'Our country's businesses are setting out clear plans for growth, with more firms planning to take steps such as launching new products and services than anywhere else in the UK. 'This reflects a business community that has innovation and ambition in its DNA. We'll continue to support local businesses as they turn their plans into action.' Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements. '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. 'While we know that fluctuations do occur month on month and the global economic outlook remains uncertain, this month's increase in confidence is an encouraging sign.' Paul Kempster, managing director for commercial banking coverage at 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. 'The East Midlands in particular saw the highest confidence levels at 66%, the highest the region has seen since 2018. '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.' Show less
STV News
3 days ago
- Business
- STV News
Business confidence in Scotland ‘higher than UK average' in May
Business confidence in Scotland rose to higher than the UK national average in May, at 52%. Overall UK business confidence rose 11 points in May to 50% – the highest level in nine months. Confidence in Scotland rose 12 points during May to 52%, according to the Bank of Scotland's Business Barometer, compared to 40% in April. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down four points at 57%, optimism in the economy rose 29 points to 48%, which analysts said 'gives a headline confidence reading of 52%'. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence increased 11 points in May to 50% – its highest level since August 2024. Firms' optimism in their own trading prospects strengthened six points to 56%, while confidence in the wider economy also climbed 16 points to 44%. In a six-month forecast, Scottish businesses identified target areas for growth as evolving their offering, for example by introducing new products or services (56%), investing in their team, for example through training (48%) and introducing new technology, for example AI and automation (36%). The East Midlands was the most confident region in May (66%), followed closely by the north-east of England (65%). Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: 'Scottish business confidence has not only continued to rise, but has now remained above the UK national average for a sixth month in a row. 'Our country's businesses are setting out clear plans for growth, with more firms planning to take steps such as launching new products and services than anywhere else in the UK. 'This reflects a business community that has innovation and ambition in its DNA. We'll continue to support local businesses as they turn their plans into action.' Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements. '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. 'While we know that fluctuations do occur month on month and the global economic outlook remains uncertain, this month's increase in confidence is an encouraging sign.' Paul Kempster, managing director for commercial banking coverage at 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. 'The East Midlands in particular saw the highest confidence levels at 66%, the highest the region has seen since 2018. '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.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Yahoo
3 days ago
- Business
- Yahoo
Business confidence in Scotland ‘higher than UK average' in May
Business confidence in Scotland rose to higher than the UK national average in May, at 52%. Overall UK business confidence rose 11 points in May to 50% – the highest level in nine months. Confidence in Scotland rose 12 points during May to 52%, according to the Bank of Scotland's Business Barometer, compared to 40% in April. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down four points at 57%, optimism in the economy rose 29 points to 48%, which analysts said 'gives a headline confidence reading of 52%'. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence increased 11 points in May to 50% – its highest level since August 2024. Firms' optimism in their own trading prospects strengthened six points to 56%, while confidence in the wider economy also climbed 16 points to 44%. In a six-month forecast, Scottish businesses identified target areas for growth as evolving their offering, for example by introducing new products or services (56%), investing in their team, for example through training (48%) and introducing new technology, for example AI and automation (36%). The East Midlands was the most confident region in May (66%), followed closely by the north-east of England (65%). Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: 'Scottish business confidence has not only continued to rise, but has now remained above the UK national average for a sixth month in a row. 'Our country's businesses are setting out clear plans for growth, with more firms planning to take steps such as launching new products and services than anywhere else in the UK. 'This reflects a business community that has innovation and ambition in its DNA. We'll continue to support local businesses as they turn their plans into action.' Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements. '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. 'While we know that fluctuations do occur month on month and the global economic outlook remains uncertain, this month's increase in confidence is an encouraging sign.' Paul Kempster, managing director for commercial banking coverage at 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. 'The East Midlands in particular saw the highest confidence levels at 66%, the highest the region has seen since 2018. '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.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business News Wales
30-04-2025
- Business
- Business News Wales
Welsh Business Confidence Falls in April
Business confidence in Wales fell 36 points during April to 15%, according to the latest Business Barometer from Lloyds. Companies in Wales reported lower confidence in their own business prospects month-on-month, down 32 points to 24%. When taken alongside their optimism in the economy, which dropped 38 points to 7%, this gives a headline confidence reading of 15% (vs. 51% in March). Looking ahead to the next six months, Welsh businesses identified their top target areas for growth as investing in their team, for example through training (47%) evolving their offering, for instance by introducing new products or services (41%), and investing in sustainability (36%). The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. National picture Overall, UK business confidence fell ten points in April to 39%. Firms' optimism in their own trading prospects dropped seven points to 50%, while their confidence in the wider economy fell 13 points to 28%. The North East was the most confident UK nation or region in April (59%), followed by the West Midlands (53%) and the North West (52%). Sector Insights Confidence fell across the four broad sectors. Manufacturing confidence remained broadly unchanged from last month, falling by one point to 38%, while the construction sector saw the largest decrease in business confidence this month, declining 22 points to 26%. Retail confidence also fell by 13 points down to 45% and the service industry fell seven points to 40%, both now at three-month lows. Samantha Noble, regional director for Wales at Lloyds, said: 'This month's drop in confidence reflects a fall in confidence at a UK level. 'We know that Welsh businesses are working tirelessly to bolster their resilience and drive fresh growth, and this data underlines these efforts – with the country's businesses investing in their people and exploring how they can evolve their offering. 'As firms press ahead with their growth plans, we'll continue to provide our support to help them seize every opportunity.' Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: 'With the announcement of global tariffs from the United States on 2nd April and the market volatility that followed, it is unsurprising that business confidence saw an impact this month. 'However, economic optimism remains higher than at the beginning of the year, showing businesses' resilience in the face of recent challenges and overall confidence is still well above the long-term average of 29%, an average taken from over 20 years of analysis.'
