Business confidence remains stable

British business confidence remained stable at 49% in March, matching February’s six-month high, according to the Lloyds Bank Business Barometer.

The data showed that retailers showed particularly strong confidence, aligning with recent data indicating a surprising rise in retail sales volumes in February.

Retail confidence rose seven points to 58 per cent, a post-pandemic high, reflecting positive trading prospects. In contrast, the manufacturing sector saw the largest decrease in business confidence, declining 12 points to 39 per cent due to increased concerns about supply chain disruptions. Confidence in the construction sector fell to 48 per cent, while businesses in the service sector saw confidence decline to 47 per cent.

While firms’ optimism in their own trading prospects held steady at 57 per cent, their confidence in the wider economy dropped one point to 40 per cent.

Amanda Dorel, Regional Director for the South East at Lloyds, said “Stronger optimism from businesses in their trading prospects has buoyed the region’s business confidence to its highest level since last summer.

“Local firms are now looking to capitalise on this outlook with new investment. We’ll continue to provide our tailored, on-the-ground support so they can make the most of the opportunities ahead.”

Hann-Ju Ho, senior economist, Lloyds Commercial Banking, added: “Business confidence remained steady this month, suggesting that UK companies may have been waiting to see the impact of government decisions at home and globally.

“Despite this, today’s data continues to reflect a positive growth trend in the UK economy. With confidence maintaining last month’s high, business leaders are optimistic, noting that investing in their development and workforce will position them well to seize future growth opportunities.”