US EditionUK business confidence weakens as doubts grow over wider economy
The net economic optimism of British businesses fell 14 points to a one-year low of 28%, despite a rise in firms’ own activity expectations to 59%, Lloyds survey shows.
- Lloyds' January survey showed British business confidence weakened this month as net optimism dropped to a one-year low, driven by a 4-point decline.
- During the Jan 5–Jan 20 survey period, President Donald Trump threatened tariffs on Britain and executives’ view of the global economic outlook hit its weakest in a year.
- Despite weaker wider optimism, firms' expectations for their own activity rose by 7 points to a three-month high of +59%, based on responses from 1,200 businesses with at least 250,000 pounds in sales.
- Hiring plans strengthened for the first time in three months and wage growth expectations rose, Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said this shows businesses managing risks and seeking growth.
- The mixed signals of weaker optimism but stronger firm activity, alongside tariff tensions during the survey, create mixed signals for investment and policy debate heading into the year.
13 Articles
13 Articles
Scottish business confidence edges higher
Business confidence in Scotland rose one point during January to 37%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 15 points at 53%. When taken alongside their optimism in the economy, down 13 points to 21%, this gives a headline confidence reading of 37% (vs. 36% in December 2025). A net balance of 42% of businesses in th…
East of England business confidence falls in January despite stronger trading prospects
Business confidence in the East of England fell by ten points during January to 34%, according to the latest Business Barometer from Lloyds. Companies in the East reported higher confidence in their own business prospects month-on-month, up four points at 58%. When taken alongside their optimism in the economy, down 25 points at 9%, this gives a headline confidence reading of 34% (vs. 44% in December 2025). Looking ahead to the next six months, …
Business confidence drops in blow to Labour
Business confidence fell again at the start of the year, according to a tracker frequently cited by Keir Starmer and Rachel Reeves, dealing a blow to the government in its hopes of boosting the UK economy before difficult elections in May. Starmer and Reeves have frequently pointed to the Lloyds Bank business barometer when speaking about bosses’ confidence in growth plans, with recent examples showing higher confidence levels than other surveys…
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