Optimism floods UK firms in wake of election result: Lloyds survey
OPTIMISM in British companies soared in July to hit its highest in more than seven years, adding to signs of improved corporate sentiment following Prime Minister Keir Starmer’s election landslide, a survey showed on Wednesday.
The monthly Lloyds Bank Business Barometer’s gauge of trading prospects for the next 12 months rose to 56 per cent this month from 44 per cent in June, its highest level since April 2017.
Optimism about the economy and employment expectations also picked up, echoing the findings of other business surveys since the July 4 election victory for the Labour Party.
Lloyds Bank’s headline gauge of business confidence rose to 50 per cent in July from 41 per cent in June, matching May’s eight-year high.
“Retail-focused businesses were the main driving force behind the positive rise in trading prospects and these results tally with the improvement we have seen in consumer confidence,” said Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking.
Confidence also improved among services, manufacturing and construction companies.
SEE ALSO
The proportion of companies planning to raise prices picked up too - something which may interest Bank of England officials ahead of Thursday’s interest rate announcement - but remained below May’s level of 61 per cent.
Lloyds surveyed 1,200 companies with annual sales of at least £250,000 (S$430,260) between July 1 and July 15. REUTERS
Share with us your feedback on BT's products and services
