UK business confidence hits ’24 low in Dec.

UK business confidence dropped to its lowest point in 2024 in December, with the Lloyds Bank Business Barometer falling 2 points to 39 per cent, though it remains above its long-term average of 29 per cent.

The decline was driven by firms’ reduced confidence in their trading prospects, according to Lloyds economist Hann-Ju Ho. However, optimism about the wider economy provided some hope heading into 2025.

The UK economy contracted in September and October, marking the first consecutive monthly declines since the pandemic, as businesses reacted to the government’s budget announced in late October.

While the Bank of England forecast zero GDP growth for Q4 2024, it held interest rates steady, awaiting inflation impact from new tax policies.

Separately, job vacancies rose 2.3 per cent in November, the largest monthly increase this year, led by the logistics sector, according to Adzuna. Average advertised salaries grew 6.5 per cent year-on-year, the fastest pace since 2021.

Despite the hiring momentum, experts warned that economic headwinds and budget measures could dampen recruitment in early 2025.

Attribution: Reuters

Subediting: M. S. Salama