UK Business Confidence Rises to Five-Month High, Lloyds Survey Shows

UK business confidence is strengthening, with the Lloyds survey showing the overall index at +53% in August, the strongest reading since March and above its 12-month average. Optimism about the wider economy rose to +49%, and firms’ own trading outlook increased to +58%, while price-raising plans fell to 51%, the lowest since 2022. Scotland’s Business Barometer points to a 55% headline confidence, driven by higher trading outlook and stronger demand, and signals plans for growth through tech investment and hiring. Wales also surpassed the UK average, with confidence at 54%, boosted by expectations of higher trading prospects and a large rise in hiring intentions. Barclays’ quarterly health check shows broader optimism after recent government changes, with 63% of firms confident about the economy and devolution seen as a driver of regional growth, along with strong support for No.10 North and regional investment. Taken together, the surveys depict a more upbeat and regionally varied UK business environment, aligned with improving indicators in related data.