UK business confidence dips in Nov. ’24

The Lloyds Business Barometer reported a three-point drop in UK business confidence for November, bringing the index to 41 per cent. Despite the decline, confidence remains well above the long-term average of 29 per cent, reflecting ongoing business resilience.

While optimism about the broader economy fell nine points to 26 per cent, trading prospects improved, with 63 per cent of firms expecting increased activity in the coming year. Employment intentions moderated slightly but remained robust, with over half of businesses planning to hire more staff.

Sector performance was mixed, with manufacturing reporting its first improvement in trading prospects in four months, while retail saw continued softness. Confidence levels varied regionally, with gains in the West Midlands, East of England, and London offsetting declines in Northern Ireland and Yorkshire & the Humber.

Hann-Ju Ho, Senior Economist at Lloyds Commercial Banking, noted that businesses remain resilient, balancing cautious economic views with optimism about their own operations.

Attribution:  Lloyds Banking Group

Subediting: M. S. Salama