Proactive Investors - Lloyds Banking Group PLC (LON:LLOY)'s latest health check of the business world shows confidence at an eighteen month high.
The Lloyds Bank Business Barometer for August said business confidence rose by 10 points to 41% in August to reach the highest level since February 2022 (44%), just prior to Russia’s invasion of Ukraine.
The 10-point increase is the largest month on month rise since March 2023.
Business sentiment was largely driven by a more upbeat view of the wider economy, after the latest rise in base rates of 25 basis points was lower than the 50 basis points increase some firms had been expecting.
This led to an overall 15-point rise in economic optimism to 36%.
However, the rise in economic optimism was not consistent among those surveyed last month with smaller businesses and mid-sized firms more optimistic than larger companies.
Companies hiring intentions rose to a 15-month high and pricing expectations increased in August, with the net balance up three points to 56%.