UK Business Confidence Reaches 9-Year High

Confidence among British employers has reached its highest level since November 2015, according to Lloyds Bank’s latest Business Barometer. The index rose to 51% in June, slightly up from 50% in May, building on an 11-point surge last month. This marks a strong rebound from April’s decline, which had followed President Trump’s announcement of steep import tariffs—many of which have since been suspended. (Source: Reuters)

The survey’s measure of overall economic optimism climbed again in June, reaching its highest level in 10 months. This follows a significant 16-point rise in May, suggesting that businesses are gradually becoming more confident in the broader economic outlook, despite ongoing global uncertainties.

Employers are signaling increased preparedness for expansion, with 60% of firms expecting to raise staffing levels in the coming year. According to Lloyds Bank economist Hann-Ju Ho, this reflects growing optimism and a shift toward planning for future growth rather than short-term caution.

Wage growth expectations have continued to climb, with 36% of surveyed businesses predicting average pay increases of 3% or more. Meanwhile, job data from Adzuna shows that UK vacancies edged down slightly in May from April, but still posted a 0.5% year-on-year increase—marking the third consecutive monthly rise after a long period of declines.

Despite the improving sentiment, business expectations remain fragile. The Confederation of British Industry (CBI) noted that while outlooks were less negative than in May, they are still weighed down by factors such as the recent employer tax hikes and persistent geopolitical instability. Households remain cautious in spending, adding to the challenges faced by businesses.

(Disclaimer: This slideshow has been sourced from Reuters)