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

Future Retirement Success

Business

Retailers’ profit optimism hits highest level in a decade, says Lloyds

by March 31, 2025
March 31, 2025
Retailers’ profit optimism hits highest level in a decade, says Lloyds

Retailers are more optimistic about their profits and growth prospects than at any point in nearly a decade, according to new data from Lloyds Bank — signalling growing confidence in the UK economy despite continued fiscal pressures and global uncertainty.

The bank’s latest Business Barometer, released on Monday, found that optimism among retailers surged in March to its highest level since August 2015. Sentiment in the sector jumped by seven points to 58 per cent — well above the overall UK business confidence reading of 49 per cent, which held steady at a seven-month high.

The upbeat data follows stronger-than-expected retail sales figures from the Office for National Statistics (ONS), which reported sales rising by 1.4 per cent in January and 1 per cent in February. Real incomes also posted their fastest rise in nearly ten years at the end of 2023, supporting a pick-up in consumer spending.

The ONS said the savings ratio — the share of disposable income being saved — remained well above the long-run average at 12 per cent in the final quarter of 2023, suggesting there is still room for households to release further spending power.

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “Business confidence remained steady this month, suggesting that UK companies may have been waiting to see the impact of government decisions at home and globally. Despite this, the data continues to reflect a positive growth trend in the UK economy.”

According to the survey of 1,200 firms conducted before Rachel Reeves’s spring statement, nearly two-thirds of businesses said they expected to grow in the year ahead. However, there was a slight dip in hiring expectations, reflecting continued concerns over labour costs and tax pressures.

In particular, tax rises announced in the October budget continue to loom over business planning. From 6 April, the main rate of employers’ national insurance will rise from 13.8 per cent to 15 per cent, and the earnings threshold triggering contributions will fall from £9,100 to £5,000 — a move that could hit labour-intensive employers hard, especially in retail and hospitality.

Despite these concerns, many economists believe that private sector surveys may have overstated the likely impact on hiring, noting that the tax hike amounts to less than 1 per cent of GDP.

Looking ahead, 63 per cent of businesses surveyed said they planned to increase prices over the coming year — reflecting both inflationary expectations and a stronger demand outlook — while only 2 per cent said they would cut them.

The Bank of England last week left interest rates unchanged at 4.5 per cent but warned that inflation could rise again later this year. Still, with retail sentiment buoyant and consumer spending showing resilience, confidence across the sector appears to be mounting — positioning UK retailers for a potentially strong 2024.

Read more:
Retailers’ profit optimism hits highest level in a decade, says Lloyds

0
FacebookTwitterGoogle +Pinterest
previous post
US consumer spending rises in February, but falls short of expectations
next post
Starmer urged to confront Trump over tariffs as UK braces for trade blow

You may also like

SMEs need to place user experience at the...

August 9, 2023

Network Rail workers to strike again in November

October 19, 2022

4K TV Review: Enhance Your Viewing Experience

June 18, 2024

Aston Martin launches £575m rights issue powered by...

September 5, 2022

Elon Musk’s Starlink set to transform rural UK...

December 16, 2024

Growing numbers sign up to access their pay...

August 8, 2022

Xeiandin & Alitam founder Feisal Nahaboo agrees deal...

August 5, 2022

German firms could benefit from closer UK ties...

April 3, 2025

Love me do: How to fall in love...

November 8, 2022

Overhaul planned for payments with renewable energy sector

March 13, 2024

    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

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • 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