UK business morale falls as concerns about cost pressures and economy persist, Lloyds says - Finance news and analysis from Global Banking & Finance Review
Finance

UK business morale falls as concerns about cost pressures and economy persist, Lloyds says

Published by Global Banking & Finance Review

Posted on June 29, 2026

2 min read

· Last updated: June 29, 2026

Add as preferred source on Google

UK Business Confidence Drops in June Amid Cost Pressures, Says Lloyds Survey

Key Findings from the Lloyds Business Confidence Survey

LONDON, June 30 (Reuters) - British businesses' confidence about the economic outlook fell this month although their assessment of their ‌own prospects was less downbeat, a survey by Lloyds showed on Tuesday.

Impact of Cost Pressures and Global Uncertainty

"While cost pressures and global uncertainty continue to weigh on business confidence, international firms are much more confident with many seeing signs of supply chain disruption easing and strengthening customer demand," said Amanda Murphy, CEO for Lloyds Business and Commercial Banking.

Survey Highlights

Overall Business Confidence

• Businesses' overall confidence fell by 3 points ​to +44, below its 12-month average of +47

Confidence in the Wider Economy

• The net balance in confidence about the wider ​economy fell ​by 4 points to +31, and lower than the 12-month average of +38

Trading Outlook and Optimism

• Firms' optimism about their own trading outlook decreased by 2 points to +56, still close to its 12-month average of +57, with 64% of firms expecting stronger output in the coming year

Manufacturing Sector Confidence

Significant Decline in Manufacturing Optimism

• Confidence among manufacturing companies showed a 10-point fall ​to +33 in June, well below ⁠its 12-month average of +46

Hiring Intentions

• Hiring intentions for the 12 months ahead rose for the first time in three months

Survey Methodology

• Lloyds' data was based on online polling ⁠by ​Ipsos of 1,200 businesses with ​annual sales of at least £250,000 ($330,275), conducted from June 1 to June 15

($1 = 0.7569 pounds)

(Reporting by Suban Abdulla; editing by David Milliken)

Key Takeaways

  • Overall business confidence fell to +44 in June, below its 12‑month average of +47.
  • Confidence in the wider economy weakened to +31, under its 12‑month average of +38.
  • Firms’ own trading outlook held steady near its average at +56, with hiring intentions improving and 64% expecting stronger output over the next year.

Frequently Asked Questions

Why did UK business confidence fall in June?
Cost pressures and ongoing global economic uncertainty contributed to a drop in overall UK business confidence, as reported by Lloyds.
How did UK firms assess their own trading outlook?
Firms' optimism about their own trading outlook decreased slightly but remained close to its 12-month average, with many expecting stronger output.
What change was observed in manufacturing sector confidence?
Confidence among UK manufacturing companies fell by 10 points to +33, significantly below its 12-month average of +46.
Were there any positive trends in the business survey?
Hiring intentions for the next 12 months improved, rising for the first time in three months according to the survey.
Who participated in the Lloyds business confidence survey?
The survey polled 1,200 UK businesses with annual sales of at least £250,000 and was conducted online by Ipsos.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category