UK business confidence slips ahead of autumn budget

28th Oct 2024 09:04

(Sharecast News) - Business confidence in the UK fell to a four-month low this month ahead of chancellor Rachel Reeve's first budget statement this week.

The Lloyds Business Barometer, which surveyed businesses between 1 and 15 October, dropped to 44% in October, down from 47% in September and 50% the two months prior.

While this month's level still remains firmly above the long-term average of 29%, the slight dip in confidence comes in the run up to Wednesday's autumn budget, with increases in employer national insurance contributions among several measures expected to be announced.

Lloyds said that 55% of businesses were more confident about the economy than three months ago, down from 57% previously, while the gauge measuring companies' trading prospects fell to 53% from 56%.

"Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels," said Hann-Ju Ho, senior economist at Lloyds Commercial Banking.

"Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers want to grow their workforce."