Finance
UK business confidence levels hit highest since 2015, Lloyds says
Published by Global Banking & Finance Review®
Posted on June 29, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 29, 2025
2 min readLast updated: January 23, 2026
UK business confidence hits a nine-year high, driven by economic optimism and hiring plans, according to Lloyds Bank.
LONDON (Reuters) -Confidence levels among British employers hit a fresh nine-year high this month as companies became more optimistic about the outlook for the economy, according to a survey published on Monday.
The Lloyds Bank Business Barometer rose by one point to 51%, the highest since November 2015, adding to an 11-point jump in May following a tumble in April when U.S. President Donald Trump announced a big jump in import tariffs, many of which have since been suspended.
The survey's measure of economic optimism touched a 10-month high, rising by a point after a 16-point increase in May.
Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said a rise in hiring intentions - with 60% of firms expecting higher staffing levels in the coming year - suggested employers were starting to prepare for future growth.
The Bank of England is watching Britain's jobs market closely as it tries to gauge how much inflation pressure remains in the economy. Governor Andrew Bailey said last week that he saw signs of a slowdown in the labour market, due in part to the government's tax increase for employers, which began in April.
But the Lloyds survey showed wage growth expectations rose for a second month in a row, with 36% of respondents forecasting average pay increases of 3% or more.
Separate figures published by jobs website Adzuna showed UK staff vacancies edged down in May from April but rose by 0.5% compared with May last year, the third such increase in a row after more than a year of falls.
"May reinforced the sense that the job market in the UK is gradually regaining its footing," said Andrew Hunter, co-founder of Adzuna.
The Confederation of British Industry (CBI) said its gauge of expectations among businesses about the economy over the next three months were less negative than in May but remained weak after the tax increase on employers and geopolitical upheaval.
"Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households and increasing global uncertainty," said Alpesh Paleja, the CBI's deputy chief economist.
(Writing by William Schomberg;Editing by Helen Popper)
The Lloyds Bank Business Barometer rose to 51%, marking the highest level since November 2015.
The survey indicated that 60% of firms expect to increase staffing levels in the coming year, suggesting optimism among employers.
Wage growth expectations have risen for the second consecutive month, with 36% of respondents anticipating average pay increases of 3% or more.
Separate figures from Adzuna showed that UK staff vacancies edged down in May but were up by 0.5% compared to May last year, indicating a gradual recovery.
Businesses are dealing with higher employment costs, cautious household spending, and increasing global uncertainty, according to the CBI.
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