Lloyds Bank has delivered a reassuring message to its business customers amid a notable rise in business confidence. According to October’s latest Lloyds Business Barometer, confidence has increased by eight points to 50%, reversing the dip seen in September.
This uplift reflects stronger optimism across multiple regions and sectors. Confidence in trading prospects rose significantly by 11 points, reaching 62%, while economic optimism climbed six points to 39%—its first increase in three months.
Paul Kempster, Managing Director for Commercial Banking Coverage at Lloyds Business & Commercial, highlighted the encouraging trends: “Seeing renewed confidence in the manufacturing and construction sectors is particularly positive, as both are cornerstones of national prosperity. As we approach the year’s end, we hope this momentum translates into tangible economic gains at both regional and national levels.
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“With retailers entering the critical ‘golden quarter,’ it’s heartening to see their confidence rise early. More broadly, confidence across sectors remains higher on average this year compared to last.”
Senior Economist Hann-Ju Ho added insight into current business conditions: “Following September’s dip, business confidence has bounced back, with trading prospects and economic optimism nearing summer levels. While pricing pressures persist—mainly driven by general inflation and increased input and labor costs—firms have shown resilience. Many have adapted by prioritizing hiring and workforce development despite rising labor expenses.”
Hiring intentions also improved, with 60% of businesses surveyed planning to increase staff over the next 12 months, up from 55% in September. Meanwhile, price expectations held steady, with 63% of companies planning price increases in the year ahead.
Overall, Lloyds Bank’s latest findings suggest growing optimism among UK businesses as they navigate ongoing economic challenges.