Member Article

Business confidence at ‘22-year high’, claims survey

UK business confidence is at a record “22-year high” with improved optimism in the North East, according to a survey.

The latest bi-annual Business in Britain report from Lloyds Bank for July recorded the highest levels of confidence since 1992, reaching a peak of 53%, with a rise in the net balance of sales, orders and profits.

The report, which surveys 1,500 business owners every six months to track the “overall balance of economic opinion”, said optimism has improved in all regions, particularly the North East, South West, Yorkshire and East Midlands.

It also predicted companies to increase staff numbers for the second half of 2014 as spending rises in the construction and manufacturing sectors.

Over the last six months, sales were found to have increased most in the construction and retail & wholesale sectors, rising to 38% and 41% respectively.

The net balance of sales was highest for the hospitality and leisure sector, with a 47% increase.

Business optimism also extended to employment levels, with 22% of those surveyed planning to recruit new staff members over the next six months.

Tim Hinton, Lloyds’ small and medium enterprise and mid markets managing director, said: “The survey indicates that business optimism about sales, incoming orders, exports and profits has continued to rise over the last six months, with some indicators climbing to record highs. These gains chime with a broader pick-up in economic activity.

“These recent improvements also help explain an accompanying rise in confidence for the second half of 2014.

“In particular, businesses anticipate further strong gains in demand and profits, which underpin their plans to boost headcounts.”

The full Business in Britain report can be viewed here.

This was posted in Bdaily's Members' News section by Martin Walker .