Firms’ confidence about the future rises to 13-month high
BRITISH businesses are more confident about their trading than they have been for 13 months, according to a monthly survey published today.
The Lloyds TSB Corporate Markets Business Barometer shows that a balance of 30 per cent of businesses questioned in July expected their business activity to rise over the next year, compared to 17 per cent in June.
The increase was driven by a slight increase in the number of companies expecting better trading and a sharp fall in the number that expected their prospects to get worse.
“The trend is becoming clearer. Businesses are gradually regaining confidence in their prospects for the year ahead,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
However, Williams warned it is important to keep the numbers in perspective.
Despite the improvement, firms’ views on the general economic outlook are less positive. Just 40 per cent expect an overall improvement compared to 49 per cent last month.
“And given the uncertainty that still hangs over the strength and shape of the recovery, such caution is wise,” he said.