UK business morale hits 17-month low, Lloyds says

Lloyds: UK Business Confidence Drops to 17-Month Low Amid Global Uncertainty

UK Business Confidence Declines in September 2025

LONDON, Sept 30 (Reuters) - British firms turned the least confident since April 2025 in September, according to a Lloyds survey on Wednesday that also showed executives' view of the global economic outlook darkened as the Iran war pushes up costs.

Key Drivers Behind the Confidence Drop

"September's fall in business confidence was driven primarily by a significant decline in economic optimism, with businesses responding to a combination of higher global energy prices and increased global uncertainty," Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said.

Impact of Global Events

"(The) trading outlook also fell, suggesting that firms are becoming more cautious about the outlook for demand and activity over the coming year."

Survey Highlights

• The Lloyds Bank monthly business confidence index declined by 12 points in September to +41%, below its average of +47% over the past 12 months
• Optimism about the wider economy dropped 18 points to +31%, six points below its 12-month average of +37%
• Firms' own trading outlook fell 8 points to +50%, below its 12-month average of +56%
• The percentage of firms planning to raise prices in the next 12 months rose slightly

Survey Methodology

Lloyds data was based on an Ipsos survey, conducted between September 2 and September 16, of 1,200 British businesses with annual sales of at least £250,000 ($331,400)

Exchange Rate Information

($1 = 0.7544 pounds)

Reporting Credits

(Reporting by Suban Abdulla; editing by David Milliken)