Lloyds press release31 May 2018 08:31
BUSINESS CONFIDENCE STRONGER AS BREXIT FEARS SOFTEN
31 May 2018
Overall business confidence increased by 3 points to 35%, the strongest since January and above the long-term average
The net balance of firms anticipating a rise in staff levels in the year ahead rose by 5 points to 30%, a four-month high
35% of firms expect Brexit to have a positive impact on their business, the highest level this year.
Confidence was strongest in the West Midlands following a sharp rise to 58%, while London levels remained strong at 52%. Firms in the East of England and Scotland were the least confident
Confidence in the retail sector jumped 23 points from April to 38% in May
Business prospects for the year ahead were the strongest since January. A net balance of 39% of firms in May, up from 31% last month, anticipated stronger prospects. In all, 50% (up from 44%) foresee a rise in their activity, while 11% (down from 13%) expected a fall. The improvement in business prospects was partially offset by a slight fall in the net balance of firms reporting greater optimism about the wider economy, which fell by 2 points to 30%. Just over half (51%) of firms, unchanged from last month, said that they were more optimistic about the economy than three months ago, while 21% (up from 19%) were less optimistic.Overall business confidence – an average of business prospects and economic optimism – increased by 3 points to 35% in May, the strongest level for four months. That was consistent with a more positive outlook for hiring. The net balance of firms expecting to increase their staff levels in the coming year increased by 5 points to 30%, which was also a four-month high. Forty-six percent (up from 41%) anticipated a rise in their headcount, while 16% (unchanged) expected a reduction. The share of firms expecting their average pay growth to rise by more than 2% in the next twelve months was steady at 40%.
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