Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Business Confidence Soars to Decade-High as Economy Stabilises Under Sunak

by May 31, 2024
May 31, 2024
Business Confidence Soars to Decade-High as Economy Stabilises Under Sunak

Business confidence in the UK has surged to its highest level in nearly a decade, according to the latest figures from Lloyds Bank’s business barometer index.

This boost in confidence, the highest since November 2015, is expected to be highlighted by the Conservative government as evidence of economic momentum under Prime Minister Rishi Sunak.

Lloyds Bank reported an 8-point rise in its business barometer index, bringing confidence to 50 per cent in May. The data revealed growing optimism among companies about their trading prospects, with many planning to increase their workforce and output. Specifically, 62 per cent of businesses anticipated higher output in May, up from 57 per cent the previous month, while only 8 per cent forecast a decline.

The report also indicated a significant rise in economic optimism, with a net increase in positive sentiment. More than half of the businesses surveyed plan to expand their workforce, and only 15 per cent expect to reduce staffing levels. This net balance rose by 6 points to 39 per cent, the strongest reading since March 2017.

Prime Minister Sunak has been working to convince voters of economic stability since he assumed office in October 2022. The recent data from Lloyds Bank may bolster his claims, showing that inflation has fallen to 2.3 per cent, close to the Bank of England’s 2 per cent target, down from a peak of 11.1 per cent.

Despite exiting recession in the first quarter of this year with a 0.6 per cent GDP growth, the UK has faced challenges, including a historic decline in living standards. Nevertheless, business confidence has improved across the UK, with notable gains in the southeast, Scotland, and the West Midlands.

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, noted the broad-based improvements in confidence across various regions and sectors, including services and construction. The survey also indicated that over 60 per cent of businesses plan to raise prices, citing margin regeneration as a key factor.

While inflationary pressures remain, particularly in the services sector, the labour market continues to be robust with historically low unemployment at 4.3 per cent. Wage expectations remain high, with a significant proportion of businesses anticipating wage growth between 3 to 5 per cent.

The rise in business confidence is seen as a precursor to increased spending and investment. Recent economic crises, including the pandemic, the war in Europe, and an energy shock, had severely impacted confidence. However, the current upturn suggests a more optimistic outlook.

As the UK economy shows signs of picking up pace, it remains uncertain if Prime Minister Sunak will fully benefit from this recovery before the next election. Labour leaders Sir Keir Starmer and Rachel Reeves may find themselves inheriting the positive economic momentum.

Overall, the latest figures from Lloyds Bank present a hopeful picture for the UK economy, indicating that businesses are gearing up for growth and stability after a turbulent period.

Read more:
Business Confidence Soars to Decade-High as Economy Stabilises Under Sunak

0
FacebookTwitterGoogle +Pinterest
previous post
UK Finance Urges Post-Election Government to Prioritise Growth and Fraud Prevention
next post
Czech Billionaire Plans £400m Overhaul for Royal Mail, Sparking Job Concerns

You may also like

6 in 10 businesses prefer to buy UK-made...

April 3, 2024

Tesco to lead the way on supermarket price...

July 17, 2023

Branson backed VC firm raises £250M to back...

January 31, 2024

Rotem Farkash: The UK can become ‘AI’s dark...

February 11, 2025

IoD calls for more ambitious exports target

September 26, 2023

Almost no trains are running across the whole...

January 5, 2023

Rishi Sunak to build stronger partnership with Japan...

May 18, 2023

Wealth Club members invest £1 million under EIS...

August 26, 2022

Lord Sugar Revives Amstrad Brand for Grandson’s Digital...

March 4, 2024

Are you a fit director?

July 19, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Expert witness casts doubt on DHSC’s sterility testing in PPE Medpro case

      June 25, 2025
    • Government backs UK Steel call to tighten import safeguards amid threat of global oversupply

      June 25, 2025
    • US airstrikes leave a mark on Iran’s nuclear sites, Maxar satellite images reveal

      June 25, 2025
    • Who is Neera Tanden? The controversial Dem operative who testified on Biden’s mental acuity

      June 24, 2025
    • Dem senator plows ahead with war powers resolution despite ceasefire

      June 24, 2025
    • House conservatives go to war with Senate over Trump’s ‘big, beautiful bill’

      June 24, 2025

    Categories

    • Business (8,301)
    • Investing (2,069)
    • Politics (15,787)
    • Stocks (3,167)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved