Proactive Investors - Business confidence bounced back in December, driven by the biggest monthly rise in optimism about the wider economy for twenty months according to the latest Lloyds (LON:LLOY) Bank business monitor.
The headline business confidence index gained 7 points to 17%, the highest since July, but it remains below both the level of a year ago (40%) and the long-term average (28%).
Firms’ perceptions of their trading prospects for the year ahead also improved, reversing last month’s fall, the survey found, while businesses reported prospects of a better festive trading period than last year and confidence in a more successful 2023.
Inflation and the risk of an economic downturn remain the biggest concerns.
Hann-Ju Ho at Lloyds Bank Corporate & Institutional Banking said: “Business confidence has received a boost in the run up to Christmas as firms anticipate a better festive trading period than last year.”
“While firms report being hopeful for a more successful 2023, inflation and the risk of an economic downturn remain the biggest concerns for businesses, with rising costs evidenced by the number of firms expecting to raise prices.”
“Wage growth is expected to remain high for now as retaining existing staff and attracting new talent will continue to be priorities for many businesses going into next year.”