Lloyds Business Barometer – Business confidence at nine-year high
UK business confidence has hit a nine year high in 2024, according to the Lloyds Business Barometer.
The results showed that business confidence is currently sitting at a 45% year-to-date average and far exceeding the long-term average of 29%. The results tracked data going back to 2015 when business confidence reached 50%.
This follows the most successful quarter of the year, with Q3 2024 averaging UK business confidence at 49%, compared to 43% in Q1 and 44% in Q2. In July and August 2024, confidence reached 50% – the highest level reported since November 2015.
While there was a slight dip in overall confidence from last month’s reading in September of 47%, this decline, led by a fall in economic optimism, still remains above the level for this time last year (36%).
Economic optimism is also at a year-to-date high at 40%. This compares to 27% for the same time last year and a 39 point increase from 1% five years ago.
Businesses’ own trading prospects for the next 12 months remains strong at 51% year-to-date. Last month, the latest September reading of 56% matched the 2024 high and far above 41% recorded this time last year.
Hann-Ju Ho Senior Economist, Lloyds Bank Commercial Banking said: “As we start the last quarter of 2024, these results are hugely encouraging for our economy and overall business confidence. Firms remain resilient with figures being reached that have not been seen for almost a decade, before the series of shocks to the economy, including the Covid-19 pandemic and energy crisis.
“While there may be future economic headwinds to navigate, business should be going into year end with a strong sense of optimism.”
