UK business confidence falls from eight-year high, Lloyds says
By David Milliken
LONDON, Sept 30 (Reuters) -British business confidence ebbed slightly this month after reaching an eight-year high in July and August, as concerns about the broader economic outlook rose to a six-month high, a survey from Lloyds Bank LLOY.L showed on Monday.
Lloyds' overall business barometer - which represents the difference between the percentage of firms with positive and negative views - fell by 3 percentage points to a three-month low of +47%. Businesses had a brighter view of their own prospects than those of the wider economy.
"The more mixed picture for economic optimism points to some businesses maintaining a degree of caution. While we still expect economic expansion, it may occur at a slower rate than the first half of 2024," Lloyds economist Hann-Ju Ho said.
Official gross domestic product data due at 0600 GMT is likely to confirm Britain's economy grew by 0.6% in the second quarter of 2024, capping a stronger-than-expected first half of the year as the country recovered from a shallow recession.
However, earlier this month the Bank of England trimmed its growth forecast for the third quarter and predicted a quarterly expansion of 0.3%, around Britain's long-term growth rate.
An S&P Global survey of purchasing managers last week showed a bigger-than-expected slowdown in growth for September, although the index remained well above levels for the euro zone.
S&P said some businesses were putting investment and hiring plans on hold until there is clarity about the new Labour government's tax policy and employment law changes.
Labour has said taxes are likely to have to go up by more than it had planned before July's election, and it is also due to set out legislation to give greater employment protection to staff with less than two years' service.
The Lloyds survey's employment balance fell by 1 point to +36% in September.
The Lloyds survey was based on responses from 1,200 British companies with annual sales of more than 250,000 pounds ($334,325) and was was carried out between Sept. 2 and Sept. 16.
($1 = 0.7478 pounds)
Reporting by David Milliken; Editing by David Holmes
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
