Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

British business morale hits 11-month high in April: Lloyds

Published 04/27/2023, 07:07 PM
Updated 04/27/2023, 07:11 PM
© Reuters. A general view of skyscrapers in The City of London financial district seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls/File Photo

© Reuters. A general view of skyscrapers in The City of London financial district seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls/File Photo

LONDON (Reuters) - British businesses were their most optimistic in nearly a year in April, boosted by growing hopes about the economy, according to a Lloyds (LON:LLOY) Bank survey on Friday that could add to pressure on the Bank of England to keep on raising interest rates.

Lloyds said its Business Barometer gauge of confidence - which measures the difference between respondents who felt more confident or less confident about their trading and economic prospects - rose to 33% from 32% in March, further above its long-running average of 28%.

The outlook of firms' optimism about the wider economy improved by five points to 28%.

Hann-Ju Ho, senior economist at Lloyds Bank, said the recent increases in business morale indicated positive momentum in Britain's economy at the start of the second quarter.

Britain has been the slowest among the Group of Seven rich nations to recover from the economic hit caused by coronavirus pandemic but it has so far defied forecasts that it would fall back into a recession.

However, more than half of companies surveyed by Lloyds intended to raise their prices in the coming 12 months despite easing cost pressures, potentially adding to inflationary pressures.

The BoE has hiked interest rates 11 times since December 2021 and is expected to deliver a further 25 basis-point increase taking Bank Rate to 4.5% on May 11 in an effort bring down double-digit inflation.

© Reuters. A general view of skyscrapers in The City of London financial district seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls/File Photo

Lloyds said wage growth hit a seven-month high, with nearly a third of businesses expecting pay to increase by at least 3%.

The survey also showed hiring intentions improved for the fifth month in a row, with the net balance ticking up three points to 27%, the highest level since June last year.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.