Optimism floods UK firms in wake of election result, Lloyds survey shows
July 31 (Reuters) -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% this month from 44% 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% in July from 41% 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.
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%.
Lloyds surveyed 1,200 companies with annual sales of at least 250,000 pounds ($320,650) between July 1 and July 15.
($1 = 0.7797 pounds)
Reporting by Andy Bruce; editing by David Milliken
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